Determinants of Dividend Policy of petroleum firms in Nigeria

This study evaluates the determinants of dividend policy of petroleum firms in Nigeria. The extent to which profitability, firm size, liquidity and leverage affects the dividend payout of petroleum firms in Nigeria triggered this research work. To this end, data was obtained from nine petroleum firms in Nigeria from 20112014. Data were analysed using descriptive statistics, correlations and regression analysis. Findings from the study revealed that firm size, liquidity and leverage does not affect the dividend policy of petroleum firms in Nigeria, while profitability was found to affect the dividend policy of petroleum firms in Nigeria. The study concludes that profitability is one of the most considered determinants of dividend policy by listed petroleum firms in Nigeria. The study recommended that investors in petroleum industry who prefer to have dividends yearly should invest in more profitable firms as they tend to pay more dividends.