Abstract:

Dividends are very important to management, stakeholders, and future investors. In this context, the current study aims to explain different financial aspects influencing Indian firms' dividend choices and give critical consequences. The OLS panel regression approach with two approaches was used. In this research, we looked at the top 20 firms in terms of market value. The article provided facts regarding the three most important financial factors that have a favourable and substantial impact on Indian corporations' dividend policies. Dividend history, present profitability, and investment prospects are all important factors in determining a company's dividend policy. Dividend considerations are one of the most important financial managerial decisions, with major consequences for managers, shareholders, as well as academics. Boss has to calibrate their scheme for pay-out depending on previous distribution patterns and assure dividend payment reliability to retain credibility in the capital market. Investors seeking a high dividend yield should consider investing in firms with stronger profitability, a track record of prior dividend payments, and investment prospects. These findings are valuable in forecasting corporate practices during the COVID-19 economic meltdown.

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