Dividend Policy Decisions: A Comparative Analysis of Indian Listed Manufacturing Companies

Abstract: This study explores the dividend policies of listed manufacturing companies in India, focusing on their influence on market value and enterprise value (EV). It addresses the gap in existing literature, which often neglects the industry-specific dynamics of dividend practices. Using stratified systematic sampling, data from 50 companies across five manufacturing industries—automobile, iron and steel, pharmaceuticals, FMCG, and durable consumer goods (DCG)—spanning FY 2013–2022 were analyzed. Statistical tools such as ANOVA and multiple regression models were employed to uncover significant relationships between financial metrics, including revenue, net profit, and dividends, with market valuation. The study also aims to design an optimal dividend policy model tailored to the manufacturing sector.