Nigeria’s Dividend Policy and Stock Price Volatility

Abstract

This paper explores the impact of dividend policy on stock price in the Nigerian stock market.

Descriptive survey research strategy was utilised for this study and four research questions and

four hypotheses generated to guide the investigation. All 199 shares trading on the Nigerian

Stock Exchange's major exchange at the start of 2010 made up the research's demography which

was later limited to include only businesses that had regularly paid dividends for a period of

twelve years. 29 enterprises in all qualified for the selection for the period from 2010 to 2021.

The study found out that the payout ratio positively affects the stock price, the findings also

indicated that earnings per share has a substantial beneficial effect on the stock price and

significant link between the size rate of a company and its stock price. It is thus recommended

that businesses should maintain a continuous dividend pay-out to raise internal money available

to undertake more profitable projects that will aid increased earnings.