Overview

Original Research

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

LUCKY OTSOGE ONMONYA, PAUL EJIKE UDEOZOR and AKINLOLU ADEKUNLE AKINWUMI.

Vol 21, No 06 ( 2026 )   |  DOI: 10.5281/zenodo.20588086   |   Author Affiliation: PhD, Accounting Department, Nile University of Nigeria, Abuja, Nigeria 1, Accounting Department, Nasarawa State University, Keffi, Nigeria 2, Accounting Department, Nile University of Nigeria, Abuja, Nigeria 3.   |   Licensing: CC 4.0   |   Pg no: 01-17   |   Published on: 08-06-2026

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.

Keywords

Dividend Policy, Dividend Per Share, Dividend Payout Ratio, Dividend Yield, Dividend Cover, Financial Performance.