Assessing the Impact of Dividend Payout Ratio on Share Price Volatility

Assessing the Impact of Dividend Payout Ratio on Share Price Volatility Dhanush Raja Vels Institute of Science Technology and Advanced Studies (VISTAS) Kabirdoss Devi Vels Institute of Science Technology and Advanced Studies (VISTAS) https://orcid.org/0000-0003-0779-124X

Dividend policy is one of the most important financial decisions taken by companies because it directly affects shareholders, investor confidence, and market perception. This study focuses on analysing the relationship between Dividend Payout Ratio and Share Price Volatility among selected companies listed in the Indian stock market. The research attempts to understand whether dividend payments influence fluctuations in stock prices and investor behaviour. The study is based on secondary data collected from annual reports, NSE, Moneycontrol, Screener.in, and other financial sources for the financial year 2025. A total of 30 companies from different sectors were selected for analysis. Statistical tools such as Descriptive Statistics, Correlation Analysis, and Regression Analysis were used to evaluate the relationship between the variables. Share price volatility was measured using Mean, Variance, Standard Deviation, and Coefficient of Variation. The findings of the study reveal that the relationship between dividend payout ratio and share price volatility is weak and positive. The correlation coefficient value indicates that dividend payout ratio alone does not strongly influence fluctuations in stock prices. Regression analysis also shows only a slight positive impact of dividend payout ratio on share price volatility. The study concludes that stock price movements are influenced not only by dividend policy but also by market conditions, investor sentiment, economic environment, industrial performance, and company-specific factors.
5 14 2026 21 26 10.62823/IJEMMASSS/8.2(I).8837 https://inspirajournals.com/home/viewdetails/?id=8837 https://inspirajournals.com/uploads/Issues/961144349.pdf