EFFECT OF DIVIDEND POLICY ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract This study investigates how dividend policy affects the financial performance of listed deposit money banks in Nigeria. It examines the roles of Dividend Per Share, Dividend Payout Ratio, Dividend Yield, and Dividend Cover within the framework of Agency Theory, applying an ex-post facto design on eight banks from 2014–2024. Results show Dividend Per Share and Dividend Cover positively influence EPS, while Dividend Payout Ratio has a negative effect; Dividend Yield is positive but insignificant. The study concludes that dividend policy significantly shapes financial performance and recommends a balanced approach for sustainable growth. JEL Classification: M41, G32, G35.