DIVIDEND PAYMENTS AND PROFITABILITY OF LISTED MANUFACTURING COMPANY IN NIGERIA: EMPIRICAL STUDY OF DANGOTE CEMENT PLC

This study examined dividend payments financial performance of Dangote Cement Plc as a representative of listed manufacturing firms in Nigeria. Drawing on secondary data from the company’s annual reports for 2015–2024, the analysis focuses on three dividend dimensions dividend rate, dividend policy, and dividend payout ratio against profit for the year as the key performance indicator. Descriptive statistics, unit root tests, and pooled ordinary least squares (POLS) regression were employed to evaluate the relationship. Results reveal that dividend rate and dividend payout ratio exert a negative and statistically significant influence on profitability, indicating that excessive distribution reduces retained earnings needed for reinvestment. Conversely, a stable and transparent dividend policy has a positive and significant effect, reflecting improved investor confidence and reduced agency costs. Collectively, the three variables explain about 69 % of the variation in profit for the year, underscoring the centrality of dividend decisions in shaping firm outcomes. The findings suggest that while dividend payments reward shareholders and signal financial strength, overly high rates and payouts can constrain growth, highlighting the need for a balanced policy that aligns shareholder returns with long-term sustainability.