The Effect Of Dividend Payout On Profitability: An Empirical Study On Information Technology Industry In India

Abstract

The aim of this study to determine relationship between dividend payout and firm profitability among top information technology companies in India. The present study carried on the basis of secondary data. For analyzing data correlation and multiple regression analysis were applied. Based on the result of analysis TCS has significant relationship between profitability and dividend payout and remaining companies are not significant. But based on the correlation analysis, majority of the companies have strong positive correlation between dividend payout and profitability. Hence the study concludes that dividend payout and firm profitability is relevant with dividend policy and also it will improve shareholders wealth.