Dividend policy is an important financial decision through which a company determines how much of its earnings should be distributed to shareholders and how much should be retained for future growth. This study examines the relationship between dividend policy and shareholders’ value, with a focus on selected Indian listed companies. It discusses how dividend per share, dividend payout ratio, earnings stability, growth opportunities, and market expectations may influence investors’ decisions and share valuation. The study follows a descriptive research design and relies on secondary information from company annual reports, financial statements, stock-exchange disclosures, and established finance literature. The discussion indicates that a consistent dividend may provide income and signal financial confidence, while retaining earnings may support expansion and long-term capital appreciation. The effect on shareholder value therefore depends on the company’s profitability, investment opportunities, cash position, and the expectations of investors. No single dividend policy is ideal for every company; an appropriate policy should balance current income with sustainable growth.

Punam Amar Badole, Dr. Kushal Dharmik, "Dividend Policy and Its Impact on Shareholders’ Value: A Study of Selected Companies" International Journal of Scientific Research and Engineering Development, V9(5): Page(1348-1353) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.