Dividend Payout and Financial Performance of Manufacturing Firms in Nigeria

The study examined the impact of dividend payout and financial performance of firms in Nigeria. The objective of the study was to examine effect of dividend pay-out ratio on return of Asset of firms in Nigeria. Dividend pay-out ratio on return on equity of firms in Nigeria. Dividend pay-out ratio on retained earnings of firms in Nigeria. The study adapted quasi-experimental research design, a simple random sampling technique. A sample size frame of 10 years, 2013-2022 were selected. Data were obtained from secondary data through annual report of selected manufacturing firms. The study employed descriptive and inferential statistics using descriptive table, and regression in analyzing the data collected. Findings from the study revealed dividend pay-out ratio with p- value of 0.0052<0.05 has a significant impact on the return on equity of the selected manufacturing firms. Dividend pay-out ratio on retained earnings (0.9489>0.05) and return on asset (0.6747>0.05). the study concluded that dividend payout has a significant and positive effect on the financial performance of the listed companies in Nigeria of the companies. Therefore, it is recommended that companies’ management should work to implement a solid dividend policy for their organization. They should also put money into projects that have positive net present values, which will result in enormous profits that can be partially utilized to pay dividends to equity shareholders.