Abstract :
This research is focused on dividend as its return and the factors that determined the
dividend policy. This research examines how liquidity ratio, debt ratio, recent dividend policy,
and profitability ratio can be the instrument to predict the current dividend policy paid by
manufacturing companies that listed in Indonesia Stock Exchange.
The variables in this research are current dividend per share as dependent variable, and
current ratio, debt to equity ratio, recent dividend per share, earning per share, return on equity
as independent variable. The result indicate that there are positive correlation among recent
dividend per share, earning per share, and return on equity that affect significantly to current
dividend per share. On the other hand, two variables (current ratio and debt to equity ratio)
have no significant effect to current dividend per share.
Keyword : dividend policy, liquidity, debt ratio, profitability