Nexus Between Dividend Pay-Out and Financial Performance of Registered Microfinance Companies in Tanzania

Abstract

The majority of scholars and researchers worldwide are interested on the financial performance of entities, whether financial or non-financial. The primary goal of this study is to look at the effect of dividend distribution on the financial performance of Tanzanian registered SACCOS. In this study, a quantitative research approach and a time series research design were used. The research population comprised economic data from 2006 through 2020. This research was based on 143 observations (Annual financial data) collected from a reliable source (Bank of Tanzania). According to the study's findings, dividend distribution is positively related to financial performance. According to the study, managers should pay attention to the "macroeconomic environment in which these organizations were operating" since it was crucial to determining their success and, as a result, their greater financial performance.