Abstract

The focus of this study is to examine the effect of liquidity, profitability and company size on dividend payout of the financial firms listed in Dar es Salaam Stock Exchange (DSE). The study used explanatory research design. All financial companies listed at DSE during 2015-2019 were used. Data were analyzed by using descriptive statistics, correlation and regression analysis. The results show that there is a positive and significant relationship between dividend payout of financial companies and three independent variables namely; profitability, liquidity and company size. The study concludes that profitability, liquidity and company size are the main determinants of dividend payout for financial firms on DSE. The study recommends that prospective investors should invest in the financial companies which possess large profit, sufficient liquidity and the large companies. These companies have great chance of paying sufficient dividends.

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