Vol. 7, Issue 11, Part D (2021)

Abstract
The pharmaceutical industry plays a considerable role in developing vaccines and medications for prevention and reduction in disease incidence, treatment of ailments and enhancement in quality of life by contributing to innovative research and engaging in technological advancements to meet the complex healthcare demands of the population. India globally occupies 3rd position in pharmaceutical production by volume and 14th by value. The domestic pharma industry consists of 3,000 drug companies with 10,500 manufacturing units. It delivers drugs to maintain health or prevent infections and alleviate diseases distressing the global population. The current research study aimed to reveal the determinants of dividend pay-out of Indian pharmaceutical companies. Dividend policy is a crucial financial policy on paying cash dividend presently or paying an increased dividend at a later stage. At times of cash surplus, the management could pay out a portion or all of those surplus earnings in the form of cash dividends or to repurchase the company's stock through a share buyback program. The objectives of the current research study are, to identify the factors determining dividend payout of pharmaceutical companies in India, to examine the relationship between dividend payout and corporate profitability and to analyse the impact of dividend policy on the firm value. Secondary data was collected from the published annual reports for the years 2015-16 to 2019-20.