%0 Journal Article %T Dividend Payout Ratio and Firm¡¯s Profitability. Evidence from Pakistan %A Mudassar Hasan %A Muhammad Ishfaq Ahmad %A Muhammad Yasir Rafiq %A Ramiz Ur Rehman %J Theoretical Economics Letters %P 441-445 %@ 2162-2086 %D 2015 %I Scientific Research Publishing %R 10.4236/tel.2015.53051 %X This paper investigates the relationship between dividend payout ratio and profitability of a firm. For this, two main sectors of Pakistan are selected, energy and textile. The study covers a time span of 1996-2008. Firm performance is measured by earning per share (EPS) and return on assets (ROA). The results of logarithmic regression show that no matter what industry is, there is a negative impact of dividend payout ratio on next year earnings of a firm. %K Dividend Payout %K Earning Per Share %K Return on Assets %U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=57524