Stock Walk with Consumable Deliverables: Association of Price and Dividend in the Nigerian Capital Market

  • Prince Umor C. Agundu
  • James T. Wula


This study examined the relationship between stock price and dividend per share. In the analytical framework, dividend per share (the independent variable) serves as proxy for corporate financial performance, while stock price of consumer good firms listed on the Nigerian Stock Exchange (NSE) features as dependent variable. The baseline assumption is that investors rely on key financial indicators (KFIs) in making rational investment decisions. All 26 consumer good firms on the Daily Official List on 31st December, 2014 were eligible for involvement, by using a profit – dividend payment filter, 18 (69%) of the firms selected. The panel data so harnessed covered a period of six years (2009-2014), and 108 observations were made. Data treatment methods include descriptive statistics, correlation and regression analyses, as well as t-test. The results established that stock price is significantly associated with dividend per share, at the 0.05 level. Against this concentric analytical outcome, it was recommended that investment analysts/managers should mine unfolding information to mind the dynamics of dividends, especially in the consumer goods market segment. In tracking and attracting greater competitive stock pricing fortunes, they should reengineer internal market mechanisms to strategically guard against scenic transaction pitfalls particularly in fragile trading settings.

Key Words: Dividend, Stock market, Prices


Journal Identifiers

eISSN: 2070-0083
print ISSN: 1994-9057