Dividend policy and financial performance of quoted brewery firms in Nigeria

This study examined the relationship between dividend policy and financial performance of quoted brewery firms in Nigeria from 2008 to 2021. Dividend per share, dividend yield and dividend payout ratio were the proxies used to measure dividend policy, while, financial performance was decomposed using return on capital employed. Panel data were utilized in this study. Ex-post facto research design was employed. Purposive sampling technique was used to sample seven (7) brewery firms. Pearson Correlation Coefficient and Panel Least Square (PLS) Regression analysis via E-Views 10.0 statistical software were used to test the hypotheses of the study. The findings of this study indicated that there is a significant and positive relationship between dividend per share and return on capital employed (β1 = 0.286271, p-value = 0.0000 < 0.05); there is a significant and positive relationship between dividend yield and return on capital employed (β2 = 0.261930, p-value = 0.0000 < 0.05); there is a significant and positive relationship between dividend payout ratio and return on capital employed (β3 = 0.261349, p-value = 0.0000 < 0.05) of quoted brewery firms in Nigeria at 5% level of significance respectively.