Abstract:
The objective of this research is to study the effect of dividend policy on the stock prices. A
sample of companies has been examined for a period of 15 years i.e. from 1995 to 2010 listed as
KSE, Pakistan. The dependent variable is stock price volatility and dividend policy as
independent variables e.g., dividend yield, dividend payout ratio and dividend to total assets of
the firm. Dividend payout ratio has negative impact, significant relationship of stock prices and
dividend yield has positive relationship with stock market prices.
