Strength in unity: Unraveling the determinants of dividend payouts across industries

This paper examines how companies can align financial performance, board diversity, and social-environmental responsibility to achieve higher dividend payouts. Using Qualitative Comparative Analysis (QCA) on S&P 500 firms from 2013 to 2021, we find that dividends are not solely driven by financial results. Instead, dividend payouts result from specific combinations of factors that vary across different industries. In some sectors, firms with modest profits can sustain high payouts when they have gender-diverse boards and strong corporate social and environmental practices. These combined non-financial elements are supporting above-average dividends. The results highlight that unity across financial, governance, and sustainability dimensions, among industry’s contexts, can strengthen both shareholder returns and long-term corporate resilience.