Abstract:
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.
