EFFECT OF DIVIDEND POLICY ON THE FINANCIAL PERFORMANCE OF CONSUMER GOODS FIRMS IN NIGERIA.
Abstract
The study examined examine the effect of dividend policy on the financial performance of Consumer goods firms in Nigeria (2014-2023). The specific objectives include to: determine the extent of dividend per share on profit for the year of Consumer goods firms in Nigeria, ascertain the effect of dividend payout ratio on profit for the year of Consumer goods firms in Nigeria and examine the effect of dividend yield on profit for the year of Consumer goods firms in Nigeria. The study employed secondary sources of data from the annual report of the selected consumer goods firms in Nigeria. Ex-post facto research design was adopted. The study employed multiple regressions of Panel Least Squares method. The result revealed that dividend per share have positive (coefficient-1884438) and non-significant (P-value 0.7714) effect on profit for the year of Consumer goods firms in Nigeria, dividend payout ratio has a negative (coefficient -7633658) and non-significant (P-value 0.3307) effect to Profit for the year of Consumer goods firms in Nigeria and dividend yield has a negative (coefficient -503347.9) but significant (P-value 0.9184) effect on Profit for the year of Consumer goods firms in Nigeria.. From the findings, recommendations were made; Consumer goods firms in Nigeria should adopt diverse strategies aimed at improving their dividend per share as it shows how much money a company makes for each share of its stock. Consumer goods firms in Nigeria should improve their dividend yield as it is used by investors to show how their investment in stock is generating either cash flows in the form of dividends or increases in asset value by stock appreciation.
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