Research purpose: The study analyzes how dividend policy influences the performance of certain Nigeria Deposit Money Banks.
Methodology: Seven of the quoted NDMBs out of a total of sixteen were chosen at random based on their capital size. The secondary data utilized spans the years 2012-2022 and comes from the annual reports of a selection of NDMBs and the Nigerian Stock Exchange. Retained Earnings, Earnings per Share, Dividends per Share, Return on Equity, Dividend Payout, and Market Value were utilized as independent variables in this analysis. Statistics including the mean, standard deviation, and panel regression were used to do both descriptive and inferential analyses of the data collected. The dividend policy effects on NDMBs' financial performance were analyzed using a panel regression model.
Findings: There was a positive and statistically significant relationship between corporate performance (CP) and RE, EPS, and DPS.
Conclusion: Based on the findings, it can be said that NDMB dividend policy significantly affects corporate performance.
Recommendations: Based on the findings of this research, managers are urged to increase their working capital and evaluate it based on its true worth. Additionally, in order to boost profits, banks should raise their asset capital levels.