A Study on the Effect of Dividend Payout Ratio and Firm Profitability

The aim of the research study was to explore the effects of Dividend payout ratio on the firm profitability. This study was conducted on the non-financial firms listed in Karachi Stock Exchange (KSE) 100 index. The data were collected since 2008-2012 from the annual reports and Balance sheet analysis of the State Bank of Pakistan (SBP). Panel data regression was used in the research paper. As per the results of fixed effect model. The dividend payout ratio has significant effects on profitability (Alternate Accepted). Leverage has insignificant effect on the profitability and firm size has also insignificant effects on the firm profitability