Main Article Content
Dividend policy is one of the most intricate aspects in finance. Firms generally adopt dividend policies that suit the stage of life cycle they are in. For instance, high-growth firms with larger cash flows as Investment and smaller tends to pay out of their earning as dividend. The dividend policies of companies may follow several interesting patterns adding further to the complexity of such decisions. The present study covers thirteen automobile companies in India and the study analysis the ten variables like Leverage, Liquidity, Profitability, Size, Earning Per Share, Price Earnings, Sales Growth, Retained Earnings, Corporate Tax and Previous Year Dividend as independent variables and Dividend payout as dependent variable. Correlation and regression used as statistical tool for analyse the data. The result of the study disclose that, the liquidity, size, price earnings, retained earning, profitability and previous year dividend significantly influence the dividend policy.