Abstract

The dividend payout ratio determines the investment decisions made by investors and determines the company's financial condition. Generally, investors prefer companies with high and relatively stable profit sharing as a signal for the prospect of the company's performance in the future. Dividend distribution is based on the company's dividend policy. Not all companies distribute dividends because dividend distribution by the company will reduce the amount of retained earnings thereby reducing the number of the company's internal sources of funds even though the company earns high profits. Several studies on the factors that affect the dividend payout ratio give different results. This study aims to measure the effect of profitability, liquidity, firm size, and leverage on the dividend payout ratio. This research was conducted on primary consumer goods sector companies listed on the Indonesia Stock Exchange for the period 2016- 2020. The sampling method was purposive sampling.

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