Dividend Policy: Profitability and Investment Opportunities for Public Companies

This study aims to determine the effect of profitability and investment opportunities on the
dividend policy of LQ45 indexed public companies on the Indonesia Stock Exchange.
Profitability is assessed using the Return on Assets (ROA) and Return on Investment (ROI),
investment opportunities are assessed using Capital Expenditure to Book Value Assets
(CAPBV), Capital Expenditure to Market Value Assets (CAPMVA), Investment to Net Sales
(IONS), and dividend policy is assessed using Dividend Payout Ratio (DPR). This research
method uses descriptive quantitative research. The results of this study indicate that
profitability and investment opportunities have no significant effect on dividend policy, but
simultaneously profitability and investment opportunities have a significant effect on
dividend policy.