Dividend Determinants Among Consistent Dividend-Paying Firms in India

Authors

DOI:

https://doi.org/10.17010/ijrcm/2026/v13i1/176057

Keywords:

dividend policy, dividend payout ratio, consistent dividend payers, firm characteristics, Nifty 100, India.
JEL Classification Codes :G30, G32, G35
Publishing Chronology: Paper Submission Date : March 28, 2026 ; Paper sent back for Revision : May 20, 2026 ; Paper Acceptance Date : May 30, 2026

Abstract

Purpose : The study was conducted to determine the factors affecting dividend decisions in consistently dividend-paying firms in India. The study aimed to identify the firm-specific factors contributing to the dividend decisions of those firms.

Design/Methodology/Approach : The study employed secondary data collected from the firms listed on the Nifty 100. The period for the study covered 2014–2024. Firms that paid dividends in at least 7 out of 10 years were classified as consistent dividend payers, resulting in a final sample of 49 firms. Panel regression analysis was conducted to examine the influence of 10 firm-specific variables, namely earnings per share, market capitalization, operating cash flow, operating profit margin, net profit margin, return on equity (ROE), current ratio, debt-equity ratio, share price volatility, and price-earnings ratio, on dividend payout ratio.

Findings : The results revealed that market capitalization exhibited a positive and statistically significant relationship with dividend payout. Net profit margin and ROE demonstrated significant negative relationships with dividend payout, suggesting that profitable firms tended to retain earnings for future investments.

Practical Implications : The study provided focused insights into the dividend behavior of consistently paying firms and helped corporate managers, investors, and policymakers make better decisions regarding dividend policy issues in the Indian corporate sector.

Originality/Value : The study contributed to the dividend policy literature by focusing exclusively on consistent dividend-paying firms in India and provided evidence on the determinants of dividend payout within a relatively stable group of firms.

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Published

2026-06-15

How to Cite

Jain, J., & Mahapatra, S. K. (2026). Dividend Determinants Among Consistent Dividend-Paying Firms in India. Indian Journal of Research in Capital Markets, 13(1), 45–58. https://doi.org/10.17010/ijrcm/2026/v13i1/176057

Issue

Volume 13, Issue 1, January-June 2026

Section

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