Langat, Kipkemoi Victor2020-10-122020-10-122020Victor, L. K. The Effects of Profit Margins on Dividend Payout in Kericho Tea Estates.2250-3153http://ir-library.ku.ac.ke/handle/123456789/20572Research ArticleTea sector is a major source of revenue to the Kenyan government. The study established the effect of production index on dividend payout policy on firms. The general objective analyzes the effect of profit margin on dividend payout in Kericho tea estates. A descriptive research design approach was used and the target population comprised of all the 105 respondents for a target population of 300 in selected tea factories in the county. The questionnaire was personally administered and the validity of the study was ensured through critical review by the research supervisor. The analysis was performed using data derived from the financial statements of listed factories under KTDA during the most recent period. Ordinary Least Squares model was used to estimate the regression equation. The data was analyzed using regression with the help of statistical package for social sciences (S.P.S.S) computer software program version 21 and presented using a pie chart and tables. Permission was obtained from the management of the institution before questioning and interviewing occurred.enDividend payoutProfit marginsFirm performanceReturn to equity ratioArticle