This study, evaluate the theories and practices of Dividend policy in manufacturing industries, was undertaken to find out various factors affecting or influencing dividend decision in manufacturing industries, means by which the provider of funds are being rewarded or benefited in terms of any form of dividend or benefits in term of any form of dividend is paid. The study investigated the role play by financial manager in determining the percentage (%) of distributable profit that goes to the investor and percentage that should be retained for business expansion.Participants were selected through a simple randomly sampling process, and questionnaire was constructed to elicit data from the respondents. The responses to the questionnaire were complemented with personal interviews. The responses of the participants were analyzed by using sample percentage table and the hypothesis formulated were tested at 0.05 (5%) level of significance using chi square statistic hinged on percentage of retained earning to dividend payout, investment opportunities affecting dividend decision and the impact or role play by the financial manager. It was concluded that investment opportunities among other factors affecting dividend decision, have made the firm or the company to retained larger percentage of its distributable profit for business expansion and also the firm does not source for fund externally when the need arise. Therefore maintaining the business. The study recommended that, the directors should invest in capital project with positive net present value to ensure steady or standby profitability of the firm and maximizing investors wealth. It was also recommended that financial manger should understand and be familiar with various conflicting factor which influencing the dividend policy deciding on the earning retained

TABLE OF CONTENT

Title pagei

Certificationii

Dedicationiii

Acknowledgementiv

Abstractv

Table of contentvi

CHAPTER ONE 

1.0 Introduction/Background of the study1

1.1 Statement of the problem3

1.2 Objectives of the study4

1.3 Research hypothesis4

1.4 Significance of the study5

1.5 Scope of the study7

1.6 Limitation of the study7

1.7 Brief history of the study8

1.8Definition of Terms9

CHAPTER TWO

2.0 literature review10

2.1Introduction10

2.2 Meaning of Dividend policy10

2.3 Form of Dividend 12

2.4 Stability of Dividend 18

2.5 Dividend relevance: walters Model20

2.6 Dividend relevance: Gordon’s model21

2.7 Dividend irrelevance: the molter Modigliani24

2.8 Factors affecting dividend decision 26

2.9 Concept of Industry28

2.10 Concept of manufacturing 32

CHAPTER THREE

3.0 Research methodology36

3.1 Research population37

3.2 Sampling techniques37

3.3 Method of data collection 38

3.4 Method of data analysis39

CHAPTER FOUR

4.0 Data analysis and presentation of data 41

CHAPTER FIVE 

5.0 Summary, conclusion and recommendation 56

5.1 Summary56

5.2 Conclusion 57

5.3 Recommendation58

REFERENCE60

APPENDIX