International Journal of Scientific Research and Engineering Development

Purpose: This research aims to evaluate how dividend distribution strategies vary across different industrial sectors and to determine the extent to which these policies influence the market value of a firm’s equity.
Research Problem: Despite extensive financial theories, there remains a lack of consensus on whether dividends are "irrelevant" or a vital signaling mechanism. Furthermore, the "one-size-fits-all" approach to dividend analysis ignores the cyclical and structural differences between sectors like Technology (growthoriented) and Utilities (value-oriented).
Methodology: The study employs an analytical research design using a quantitative approach. Secondary data from 100 publicly listed companies across four sectors (Tech, FMCG, Banking, and Energy) over a five-year period (2019–2024) were analyzed using panel data regression and Correlation analysis.
Key Findings: The study reveals that "Dividend Yield" has a statistically significant positive impact on shareholder value in mature industries (FMCG/Utilities), whereas "Earnings Retention" is more highly valued in the Technology sector.
Conclusions and Implications: Dividend policy is highly industry-specific. For investors, the findings imply that dividend signals should be interpreted through the lens of industry maturity. For corporate managers, the study suggests aligning payout ratios with the firm's lifecycle stage to optimize share price.

Samrudhi Vijayrao Gawande, Dr.Ujwala Narkhede,"Industry-Wise Comparative Analysis of Dividend Policy Practices and Their Impact on Shareholder Value" International Journal of Scientific Research and Engineering Development, V9(2): Page(1306-1308) Mar-Apr 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.