Noah KEMBOI1*, Dickson Kamau KINYARIRO2, Methuselah Bichage GESAGE3, Justus Nderitu MAINA4
1,2,Accounting and Finance Department, The Co-operative University of Kenya, Nairobi, Kenya.
3School of Business & Economics, The Co-operative University of Kenya, Nairobi, Kenya.
4Accounting and Finance Department, Kiriri Women’s University of Science & Technology, Kenya.
Citation: KEMBOI N, KINYARIRO DK, GESAGE MB, MAINA JN (2024) Relationship between Dividend Yield and Financial Performance of Listed Firms at the Nairobi Securities Exchange. SciTech Management Sciences 2024.
Received: January 20, 2024 Accepted: January 23, 2024 Published: January 23, 2024
This study assessed the relationship between dividend yield and financial performance of the listed companies at Nairobi Securities Exchange. Bird in hand theory anchored the study. An explanatory research design was adopted where all the 62 firms listed in Nairobi Securities Exchange (NSE) participated in the study. Secondary data collected from the published financial statements for the years from 2018 to 2020 by use of a data collection sheet was analysed using descriptive statistics and regression analysis. The results indicated that dividend yield had a positive and significant relationship with the performance of the listed firms at NSE. The study recommended that the listed firms should strive to have a sizable amount of the profits accrued by the firm be paid as dividends and that the listed firms should strive to be consistent in their dividend payments.
