The decision was taken just a week before the Glazer family confirmed they were considering putting the club up for sale last month.
United’s first quarter fiscal 2023 results state: "On November 15, the board of directors did not approve the payment of the semi-annual dividend for fiscal 2023."
On November 22, the day United parted company with Cristiano Ronaldo, it was announced that "a process to explore strategic alternatives to enhance future growth" had begun.
The statement added that "the board will consider all options, including new investment into the club, a sale, or other transactions."
The Manchester United Supporters’ Trust reacted to the news positively.
A statement read: "We are glad that, while the dividend issue has dragged on for far too long, we have finally got to the right position.
"Certainly dividends should not be paid when the football club is not achieving success on the pitch, challenging for top honours.
"That is rewarding failure and removes the incentive for the owners to ensure sufficient reinvestment of profits back into the football club.
"Our view is that no further dividends should be paid while new investment and ownership remain unresolved."
Additional reporting from PA