DETERMINANT OF DIVIDEND PAYOUT RATIO ON FERTILIZER SECTOR

Abstract

A dividend is a portion of a company’s income that is paid to shareholders once a year. The dividend policy decides how much of the profit will be shared, and this is sometimes a disagreement between companies and shareholders. This study explores the factors that influence the dividend payout ratio in Pakistan’s fertilizer sector. This study used secondary source of quantitative data which were taken from audited annual financial reports of selected companies from 2014 to 2024. The data analyzed by descriptive statistics and regression with a method of Panel Ordinary Least Squares (POLS). This aim of this study to measure the impact of various independent variables (Earning per share, Profitability (ROE), Liquidity, Leverage, and retained Earnings) on the dividend payout ratio. The results indicate that Profitability (ROE) has a statistically significant effect on the dividend payout ratio, suggesting that more profitable companies are more likely to distribute higher dividends.

Keywords: Determinants, Dividend Payout Ratio, Fertilizer Sector, Pakistan