Brief Introduction

The importance of dividend policy in the business world cannot be over-emphasized. A number of stakeholders, including investors, managers, lenders, financial consultants/ analysts, etc. use It in making an informed decision. Considering the importance of dividend policy from the investor’s point of view dividend is not only a source of income but also a way of assessing the company from an investment point of view.

In other words, the main objectives of investors in the stock market are to maximize the expected return at a low level of risk and this return may be in the form of dividends or capital gain in effect, maximizing shareholders wealth depends on the dividend policy of the company because of these shareholders would satisfy their purchasing and consumption pattern (Khan 2012).

In companies perspective selecting a suitable dividend policy is an important decision for the company because the flexibility to invest in future projects depends on the number of dividends that they pay to their shareholders. As such, certain important factors like managerial and behavioral environment, firms profitability ratio, the willingness of the company etc. are considered to the companies in designing their dividend policies (Khan 2012) Ling, Matalip, Sharin, and Ethman (2008) studies the characteristic of dividend-paying companies of Malaysia and found out that dividend-paying companies are more profitable, less risky and more mature in their activities or as compared to non-dividend-paying companies.

Their results also indicate that managers of Nigerian companies understand the importance of paying dividends and they pay dividends even if the companies are not earning profits.

Table of Content

Chapter One
1 Introduction
1.2 Statement of The Problem
1.3 Objective of The Study
1.4 Research Question
1.5 Research Hypothesis
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Definition of Terms

Chapter Two
Literature Review
2.1 Introduction
2.2 Conceptual Review
2.3 Theoretical Review
2.3.1 Gordon’s Growth Valuation Model Theory:2.3.2 Graham, Dodd and Cottle Theory 1962.
2.4 Empirical Review

Chapter Three
3.0 Methodology
3.1 Introduction
3.2 Research Design
3.3 Population of this Study
3.4 Sample and Sampling Procedure
3.5 Data Collection and Processing Procedure
3.6 Research Hypothesis
3.7 Statistical Technique

Chapter Four
Data Presentation, Analysis and Interpretation
4.1 Introduction
4.2 Analysis and Interpretation of Findings
4.3 Test of Hypothesis

Chapter Five
Summary, Conclusion, and recommendations
5.1 Summary
5.2 Conclusion
5.3 Recommendations
References
appendix