Determinants of Dividend Payout By Property Companies Listed on The Zimbabwe Stock Exchange: The Case of Zimre Property Investments Limited

Marima Israel, Kurebwa Jeffrey

Abstract


The purpose of the study was to establish the determinants of dividend payout for listed property companies on the Zimbabwe Stock Exchange (ZSE). The study adopted the pragmatist philosophy that permitted the triangulation of quantitative and qualitative methodologies. For data collection, questionnaires and in-depth interviews are to be used with Statistical Package for Social Sciences (SPSS) and thematic analysis to be used for data analysis respectively. The findings revealed that the variables considered in this study namely profitability, prior dividend, and market value had a positive relationship with dividend payout. Only growth opportunities were inversely related to the dividend pay-out. Industry classification had positive effect to the dividend pay-out on ZSE listed property companies as the sectors was characterized by existing growth opportunities. Similarly, dividend payout would positively influence the share market price.The study therefore concluded that there was existence of positive correlation between share price, company classification and dividend pay-out. Industrial classification had an impact on dividend pay-out. Managers of property firms were recommended to aim at having high growth opportunities high Current Earnings (CE), high return on equity and investing in risk business. The Reserve Bank of Zimbabwe (RBZ) could facilitate the creation of stock market (Secondary market) where investors could easily sell or buy shares of companies to curtail the loss of investors in the property market. The Ministry of Finance and Economic Development should create relevant policy that allowed the participation of the government in the property sector.

Keywords


Property companies; dividend payout; Zimbabwe stock exchange; Gross domestic product

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DOI: http://dx.doi.org/10.3968/12778

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