Abstract
The study examined the effect of dividend policy on the profitability of selected banks in Nigeria using a time frame of 2011 to 2015. The study adopted ex post facto research design while the data used were extracted from the annual reports and accounts of the sampled banks. The data obtained were analysed via descriptive analysis of variables while multiple regression analysis was employed for the estimation of the model for testing the hypothesis. The result revealed that banks’ dividend payout ratio and total assets have significant effect on the profit after tax of banks in Nigeria while it was reported that banks’ dividend per share has no significant effect on their profit after tax. The study recommended that it is imperative for Nigerian banks to always find ways of increasing the percentage of distributable earnings being paid to the ordinary shareholders in the form of dividends as well as finding means of boosting their capital base in order to enhance and improve the profit after tax of the banks while the banks should be strategic in the determination of the amount of gross dividend being declared on every issued ordinary share ranking for dividend.
Published Version
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