This study examines the effect of firm specific characteristics on dividend payout ratio of quoted conglomerates in Nigeria for a period of eight (8) years ranging from 2004-2011. The population of this study comprised the eight (8) conglomerate firms quoted on the Nigerian Stock Exchange as at 31 December, 2011. Correlational research design and ex-post factor research design was adopted. Multiple regression technique was employed as a tool for analysis in examining the impact of firm specific characteristics on dividend payout ratio of Nigerian quoted conglomerates and the study relied on the OLS regression result. 

The findings revealed a positive and significant impact of firm size, profitability, and institutional ownership on dividend payout ratio, liquidity had no effect on dividend payout ratio while leverage had a negative and significant effect on dividend payout ratio. The study concluded that four of the explanatory variables of this study (that is; firm size, profitability, leverage and institutional ownership) impact on the quantum of dividend paid by Nigerian quoted conglomerates firms. Therefore, it is recommended that the Nigerian quoted conglomerates should be gradually increasing the sizes of it firms by atleast 1.5% as it will have significant positive effect on profitability. They should also make the atmosphere conducive for institutional investors to subscribe for their shares by offering them incentive packages like discount on shares and bonus issue. The quantum of debt should always be lower than equity as this will boost their chances of paying higher dividend.