| dc.description.abstract | Savings and Credit cooperative Societies that are successful earn income which is either
used to acquire securities, retire debts, invest in operating assets or distribute to its members as
dividends. The biggest challenge that arises if a SACCO decides to distribute its income to its
members is the proportion of the income that should be distributed and also the pattern of the pay
out. Many reasons exist why cooperatives should pay or should not pay dividends and investors
pay attention to dividend; that is the” Dividend Puzzle”.
The objective of the study was to establish the factors that determine dividend pay out
ratio among SACCO'S in Kenya. The data was collected in September 2010. The sample
composed of 25 SACCO'S that have a country wide network in Kenya, and they have head
offices in Nairobi. The total numbers of the registered SACCO'S in Kenya are 5000.
The results were analyzed using Regression method and presented on tables. The study
established that SACCO'S Profitability, Growth opportunity, Cash flow and Size variables
positively influenced dividend pay out ratio, while risk variable negatively influenced dividend
pay out ratio. | en |
