Dividend Dynamics in Turbulent Times

Abstract

ABSTRACT The researcher aimed to investigate the effect of COVED-19 on dividend pay-outs in Tanzania listed companies. The studywas subjected to the specific objectiveswhich were; to examine the influence of profitability on dividend pay-out during the COVID-19, also to examine the extent to which companies liquidity affect dividend pay-out during the COVID-19, and finally to assess the relationship between leverage and dividend pay-out during the COVID-19. Quantitative research approach was used where panel data was collected from listed companies in DSE from the beginning of COVID-19 pandemic, 2020 to 2021 for 29 companies. The study has therefore have a total sample size of 58 observations. The Im Pesaran-Shin Unit root test was employed by a researchertoexaminthe unitroot characteristic ofpanels.Thefindings indicatedthat,all variables areintegrated oforder 1,follows1(1)process.AlsothePanelDynamicOLSwereemployedbya researcher to investigate relationship among the variables. The findings indicated that profitability and companies leverage were having a negative significant relationship with the dividend pay-out in Tanzania during the COVID-19, while companies liquidity were having a positive and significant relationship with dividend pay-out during COVID-19. The researcher recommended that, mantaiing appropriate and effective liquidity is very important for the company safety. The listed companies are therefore encouraged to have the effective level of liquidity and liquidity reserve which will help the company especially during the period of crisis, Keywords: Dividend Payoout, Liquidity, Earn Per Share, Debts,