Effect of Dividend per Share and Payout on Financial Performance of Listed Industrial Goods Firms in Nigeria

There have been many challenges experienced by firms in keeping up with optimal financial performance. Dividend policy is a prominent concern to investors and directs the perceptions of different classes of stakeholders on the profitability of a business. Growing debates on the subject matter has led to questions on how dividend policy affects the financial performance of firms. This study aims to assess the relationship between dividend per share, dividend payout and financial performance in the Nigerian industrial goods sector. The study is built on the ex post facto research design and as such it focuses on a twelve-year time scope which spans from 2012 to 2023. The study has a population of 13 listed industrial goods firms and the study selected a sample of 10 firms to get the most representative sample of the Nigerian industrial goods sector. The study employs the use of dividend per share ratio and dividend payout ratio as the proxies for measuring the two dividend policies. The study also employed the use of return on asset as the proxy for measuring financial performance with revenue serving as the control variable. The study found that dividend per share and dividend payout ratio was not statistically significant in affecting the return on asset of sample firms. The study concluded that dividend per share, dividend payout ratios were not significant in affecting the financial performance of sample firms. The study recommended increasing dividend payout rates and training relevant staff to help manage dividend policy. Keywords: Dividend Per Share, Dividend Payout, Return on Asset, Revenue, Industrial Goods Firms.