EFFECT OF EARNING VARIABLES ON STOCK RETURN OF FOODS AND BEVERAGES MANUFACTURING FIRMS IN NIGERIA (A STUDY OF UNILEVER PLC)

Abstract The study examined the effect of earning variables on stock returns of foods and beverage manufacturing firms in Nigeria with reference to Flour Mills (2014-2023). The study specifically examined the effect of profit for the year on dividend yield of food and beverage manufacturing firms in Nigeria, the effect of return on assets on dividend yield of food and beverage manufacturing firms in Nigeria and also the effect of return on equity on dividend yield of food and beverage manufacturing firms in Nigeria. Three research questions and hypotheses mere formulated in line with the stated objectives. The study made use of expose facto research design, data for the study were sourced through annual reports and accounts of Flour Mills. Data collected were analyzed using multiple regression, result of the analysis shows that Profit for the year has positive and significant effect on dividend yield food and beverage manufacturing firms in Nigeria. It was also observed that return on asset have significant effect on dividend yield food and beverage manufacturing firms in Nigeria. The study also showed that dividend yielding food and beverage manufacturing companies in Nigeria are significantly impacted by return on equity. Based on its conclusions, the study recommended, among other things, that the firm’s investment opportunities and investors preference for dividends over capital gains be taken into consideration when determining the optional stock return payout. Insufficient attention to this matter could lead to shareholders losing faith in the company and selling off large amounts of its shares. The price of equities frequently trends downward in such circumstances. The research findings indicate that the theory of income stream valuation holds a central and essential position in the doctrine of finance.