Factors Influencing Dividend Payout Policy

Abstract

Dividend policy is primarily concerned with the decision regarding the distribution of a firm’s profit between dividend and retention. The intention of the study was to examine factors influencing dividend payout policy, a case of commercial banks in Tanzania during the 10-year period between 2010 and 2019. These commercial banks were These banks are CRDB, DCB, KCB, MBP, MCB, MKCB and NMB. As for this study, a correlation research design was used in conducting the research. This study employed quantitative in the collection of relevant information concerning the objective of the study. Secondary data was collected from the banks’ financial statements. Data was analysed using STATA. The study revealed that all factors influencing dividend payout policy. This study suggests Board of Directors of selected banks in Tanzania should consider growth, earnings per share, profitability, leverage and company size when designing their decision payout policy decisions. Also, the researcher recommended that future line of research attempt should be made at increasing the sample size and also include some other determinant factors such as business risk, ownership characteristics and the age of the company