Influence of Dividend Payout Ratio on Stock Prices of Listed Firms in Nigeria

Samuel Obinna Ojogbo; Samson Ogege; Babatunde Olufemi Oke

Ojogbo, Samuel Obinna Department of Finance, Faculty of Management Sciences, University of Lagos, Lagos, Nigeria
Ogege, Samson Department of Finance, Faculty of Management Sciences, University of Lagos, Lagos, Nigeria
Oke, Babatunde Olufemi Department of Finance, Faculty of Management Sciences, University of Lagos, Lagos, Nigeria

Keywords: Dividend, payout ratio, share prices, influence

Abstract

Today's businesses' dividend policy is a micro-prudential driver of organizational success since it increases shareholder profit and wealth maximization. The goal of this study is to consider how dividend payout influences the share prices of mentioned firms on the Nigerian Stock Exchange (NSE) from 2014 to 2020, with a sample of fifteen (15) companies. The secondary data acquired for this study were analyzed using the panel least square estimate approach and Hausman's test. The econometric model regressed the dependent variable on the explanatory variables. According to this study, the dividend has a negative and inconsequential relationship.