Determinants of Dividend Payout Policy for the Manufacturing Companies Listed at DSE in Tanzania

This study aimed at examining the determinants of dividend payout policy for the manufacturing companies listed at DSE in Tanzania. Quantitative research design employed to carry out the study. The secondary data were used which extracted from the Annual Report of Sampled firms. This data have been sourced from website, database of African listed firms and DSE publications covering the period of 2007 to 2011.The five sampled manufacturing companies listed at DSE presenting purposive sampling have been used in the study. Six variables were used, where by dividend payout represented as dependent and profitability, liquidity, growth, firmsize and leverage regarded as independent variable. Furthermore, Five hypotheses formulated, measured and tested by panel data (time series) regression analysis with descriptive and correlation analysis through SPSS. The Findings reveal that profitability is the most significant factor that influencing dividend payout for the manufacturing companies listed at DSE .However firm size is insignificant factor for decision of dividend payout. In addition, contrary to the described literature, this study doesn’t support liquidity to be important factor for dividend payout to manufacturing companies while leverage and growth reveal the inversely insignificant relationship to dividend payout for manufacturing companies in DSE context. Finally, individual investor who prefers current high dividend should invest on profitable manufacturing company listed at DSE and management should announce the dividend after considering their profit