A COMPARATIVE STUDY ON ANALYSIS OF DIVIDEND DETERMINANTS OF SELECTED METAL AND CEMENT COMPANIES

Abstract

Dividends are commonly defined as the distribution of earnings (past or present) in real assets among the shareholders of the firm in proportion to their ownership. (Frankfurter and Wood) Literature regarding dividend has questioned the importance given by investors in receiving stable payments in the form of dividend vis a vis capital required by companies. This paper attempts to throw light on determinants of dividend policy and how can certain factors be considered before making a dividend decision. Metal and cement and cement products sector from Nifty 50 listed companies have been selected to know the determinants of dividend and their impact on stock prices for 10 years starting from 2009 to 2019. Regression analysis has been used to analyze the data. This study found that the earning per share is the significant determinant of dividend policy in metal industry while in cement industry the retained earnings are the significant determinant of dividend policy.