rationale of the study was to identify the factors which effect dividend payout
policy of the firm and whether that policy is stable depending upon last year’s
dividend and current earnings or not. This study was conducted on Karachi Stock
Exchange listed companies and found that leverage and tangibility were
significant however other variables have consistent relationship with dividend
payout policy as found in literature. It was also found that firms do not
follow stable dividend policy however there was strong significant relationship
between dividend payout with last year’s dividend.
JEL classification numbers: G 30, G 32, G 35.
Keywords: dividend payout policy, Karachi Stock
exchange, leverage, tangibility.