Title:
DIVIDEND POLICY AND FINANCIAL PERFORMANCE OF CONSUMER GOODS COMPANIES IN NIGERIA

Authors:
Farida Musa, Ibrahim Abubakar Abubakar and Mubarakatu Garba

Abstract:
In Corporate Businesses dividend policy have been some of the most crucial issues faced by managers in decision making. This study Investigate the Impact of dividend policy on the financial performance of consumer goods companies in Nigeria. Ex-post Factor research design was employed and data was extracted from the annual report and accounts of the sampled companies covering a period of 8years (2010-2017). The data were analyzed using multiple regression analysis and the result showed that dividend per share has positive with significant and insignificant relationship on return on assets and return on equity respectively. Dividend payout has negative and insignificant relationship on return on assets. Dividend payout has positive and insignificant relationship on return on equity. The study concluded that DPR has both positive and negative impact on ROA and ROE respectively. The study recommended that Managers should ensure that their organizations have a good dividend policy that encourages higher dividend per share and minimized dividend payout ratio for it to have good financial performance.

Keywords:
Dividend policy, Dividend per share, Dividend payout, Return on Assets, Return on Equity