The Effect of Profitability, Liquidity, Leverage, Firm Size, and ESG Score on Dividend Policy in Basic Materials and Energy Companies Listed on The Indonesia Stock Exchange for The Period 2021-2024

This study aims to analyze the effect of profitability, liquidity, leverage, firm size, and ESG score on dividend policy in Basic Materials and Energy companies listed on the Indonesia Stock Exchange during the period 2021–2024. Dividend policy in this study is proxied by the Dividend Payout Ratio (DPR). This research employs a quantitative approach using panel data regression analysis. The sample was determined using purposive sampling, resulting in 28 companies with a total of 112 observations. The results show that profitability has a positive and significant effect on dividend policy, indicating that firms with higher profitability tend to distribute larger dividends to shareholders. Meanwhile, liquidity, leverage, firm size, and ESG score do not show a significant effect on dividend policy. These findings suggest that dividend decisions in the Basic Materials and Energy sectors are primarily influenced by firms’ ability to generate profits rather than other financial characteristics or sustainability performance.