Time Series Data Secondary Data Financial Statements OLS Multiple Regression Banking Sector Retained Earnings Dividend Earnings

This study examined the effect of dividend policy and financial performance of deposit money banks in Nigeria. The objective of this study is to examine the relationship between earnings per share and financial performance. Using time series data generated from secondary sources through the publications of Nigeria Stock Exchange and financial statements of the Fidelity Bank under review. The study also employed OLS multiple regression analytical techniques to establish the relationships among the variables of dividend policy and financial performance of Fidelity bank Plc. The findings reveal that there is significant relationship between financial performance and earnings per share. It is recommended among others that an optimal dividend policy that maintains an appropriate balance between dividend earnings and retained earnings should be undertaken to promote financial health of the deposit money banks.