Effect of Dividend Per Share on Performance of Listed Deposit Money Banks in Nigeria

Abstract

This study examined the effect of dividend per share on firm performance of Nigerian banks, using return on assets as a measure of performance. The study employed ex-post facto research design and secondary data obtained from the financial statements of selected firms for the period 2015 2024. The sample covered eleven (11) selected deposit money banks based on data availability. Data were analyzed using descriptive statistics and ordinary least squares regression analysis. The regression results revealed that dividend per share has a positive and statistically significant effect on return on assets, indicating that dividend policy significantly influences firm profitability. The model also showed a strong explanatory power and was statistically significant overall. The study concludes that dividend policy plays an important role in enhancing firm performance and recommends that firms adopt a stable and consistent dividend policy to improve profitability.