Determinants of Dividend per Share: Evidence from the Nigerian Stock Exchange

This study examines the variables determining dividend per share (DPS) in some selected companies listed on the Nigerian Stock Exchange (NSE). The sample consists of 80 companies listed on the NSE as at 2012. The relevant explanatory variables were subjected to multiple regression analysis. Results revealed that current year earnings per share (EPSt) and previous year dividend per share (DPSt-1) were both positively significant at one per cent. Dividend pay-out ratio (PAYOUTt) was significant at five per cent. Both Profitability (PROFITt) and Investment (INVESTt) were significant at 10 per cent, but INVESTt was negatively significant. One may conclude that EPSt, DPSt-1 and PAYOUTt are the three major variables influencing the company’s decision to increase or decrease dividend per share (DPSt) in the NSE. Managers should therefore monitor these variables in taking decisions for their companies.