ABSTRACT

The aim of the study is to investigate the determinants of dividend policy of

Pakistani power generation and distribution sector. The objective of this study was to

establish the dividend payout ratio of companies listed at the KSE. This study relied on

secondary data. The study sampled 12 companies listed at the KSE from 2011 to 2015.

The listed firms within financial and other regulated sectors were excluded in coming up

with the sample size. Regression analysis was used to analyze the data and find out

whether there exists a relationship between dividend payout ratio and independent

variables (Profitability, leverage, Sales growth, cash flow from operating activities and

corporate tax).

The study found out that there is a significant affect on dividend payout ratio with

profitability, leverage, cash flow from operating activities and corporate tax. The findings

revealed that there is a positive relationship with Leverage, Corporate tax on dividend

payout ratio. The study concludes that Sales growth insignificant affects dividend payout

ratio.

Based on these results, the study recommends companys management education,

as they need to understand the factors that lead to increase or decrease in the companys

dividend payout ratio.

Keywords: Dividend payout, Profitability, leverage, Regression Analysis, Pakistan