INTERNATIONAL JOURNAL OF ACCOUNTING, FINANCE AND SOCIAL TAXATION (IJAFST)
Dividend Stability and Stock Returns of Listed Industrial Goods Firms in Nigeria
E-ISSN: 2316-422X
P-ISSN: 3982-0997
DOI: https://iigdpublishers.com/article/1639
This study examined dividend stability and stock returns of listed industrial goods firms in Nigeria for a period of thirteen years (2012 – 2024). Dividend stability was proxied by dividend persistence, dividend payout ratio, dividend growth, and dividend volatility, while stock returns represent market-based performance. The study adopted an ex post facto research design and applied panel data techniques using firm year observations drawn from audited annual reports and the Nigerian Exchange (NGX) Group. Fixed effects and random effects estimators were employed, with the Hausman test guiding model selection, while robust standard errors were used to address heteroskedasticity and serial correlation. The findings revealed that dividend persistence, dividend growth, and dividend payout have positive and significant effects on stock returns, while dividend volatility has a significantly negative effect. The study concluded that dividend stability improves investor confidence and market valuation and therefore, recommended consistent and disciplined dividend policies in Nigeria’s industrial goods sector.
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