IMPACT OF CAPITAL STRUCTURE ON DIVIDEND PAY-OUT RATIO IN UNILEVER NIGERIAN PLC

This study examined the impact of capital structure on dividend pay-out ratio. The data used for this study was extracted through secondary source from the annual financial report of Unilever Nigerian plc. The study employed the use of the multiple regression technique which offers explanation on the relationship between a dependent variable and two or more explanatory variables within a period of 2002 to 2015. The ordinary least square (OLS) method was used based on its BLUE (best, linear, unbiased, estimator) properties. The result reveals that there is insignificant positive relationship between the leverage and dividend payout ratio. The study also found that there exist significant positive relationship between the earnings and dividend pay-out ratio. The study recommended that firms should rely less on the use leverage and focus more on developing internal strategies that can help improve internal source of finance without affecting the dividend paid out.