EFFECT OF DIVIDEND POLICY ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

This study examined the effect of dividend policy on the financial performance of listed deposit money banks in Nigeria between 2015 and 2024. The study adopted Return on Equity (ROE) as the dependent variable, while dividend payout and dividend yield served as independent variables. Secondary data were obtained from the financial statements of deposit money banks listed on the Nigerian Exchange group (NGX), Central Bank of Nigeria statistical. The research employed a correlational research design and data were analyzed using descriptive statistics, correlation, and regression analysis. Findings revealed that dividend payout has a strong positive and significant effect on ROE, while dividend yield exerts a weaker but significant positive effect. The regression model confirmed that dividend policy explains over 53% of the variations in financial performance of Nigerian banks within the study period. The study concludes that dividend policy is a critical determinant of financial performance among Nigerian banks. It recommends that Nigerian deposit money banks should preserve a stable and foreseeable dividend payout policy, as it positively impacts financial performance and signals profitability to investors and also Composed Dividend and Retention Strategy: While dividend payouts are important, banks should also strike a balance between dividend distribution and profit retention to sustain growth and regulatory capital requirements.