Mountain Top University Library

There has been debates over the years on the factors that determine dividend policy in companies and/or organisations. This research was carried out in order to discover the factors that determine dividend policy. In carrying this study, 6 out of the 20 consumer goods companies listed on the Nigeria Stock Exchange as at 31st December 2020 were selected randomly. These 6 companies represent 30% of the consumer goods companies in Nigeria as at the date. The study employed secondary data. The data were generated from the audit financial statements of the 6 companies respectively from the period of 2012 -2019. The data gathered were used to test the hypotheses and answer the research questions. The study found that there is no significant linear relationship between the determinants of dividend policy and dividend payout of listed consumer goods companies in Nigeria. The hypothesis one, Profitability (ROA), the regression result shows that profitability has a significant level of 0.496 (p>0.05). The second hypothesis, Firm size, the result shows 0.247 level of significance. Hypothesis three, Firm size, the regression result shows a significant level of 0.024. For the third hypothesis, the result shows that liquidity has a significant level of 0.015.
Sequel to the findings of this research, It is recommended that the board of directors in listed consumer goods manufacturing firms in Nigeria focus more attention on strategies that improve profitability, firm size and financial leverage to maximise shareholders wealth through dividend payments.