DOI: 10.36347/sjebm.2019.v06i02.009

Pages: 143-146

Dividend policy is described as one of the difficult challenges for economists in the financial sector. In this study, the debt and profit chosen are the factors that influence dividend payout. The research method uses conclusive causality with data sourced from the Indonesia Stock Exchange (IDX). The population of this study was agricultural companies listed on IDX in the period 2009-2016 and used a purposive sampling method for their selection. The results showed that profitability had a positive effect on dividends, while debt had no significant effect. However, debt is found to have a significant positive effect on profitability. Primarily, profitability is found as an intervening variable for dividend payout.