Liquidity position of the Company, since dividends are a “cash outflow” the more powerful the company’s liquidity position means the greater the ability to pay dividends. By itself the company’s liquidity is determined by decisions in the field of investment and how to meet the needs of its funds. It can be said that if the company’s liquidity position is getting stronger against the prospects of future funding requirements, then the “dividend payout ratio” will be higher.

Needs Funds to Pay Debt, if the company determined that repayment of debts will be taken from retained earnings. Means companies reduce dividend payments. In other words, the company set a dividend payout ratio is low.

Company growth rate, the faster growth of the company means that the higher the funds to finance the growth of the company. In these situations companies usually prefer to resist the earnings rather than paid out as dividends, this means that the lower the “dividend payout ratio” her. If the company has been able to meet the needs of capital market funding sources or the other then the company can set a “high dividend payout ratio”.

Monitoring against the Company, relying on internal spending in order to attempt to maintain control of the company, this means reducing the “dividend payout ratio”.