Gebrehiwot, Gebremedhin (Ato)Demilie, Chekole2018-06-222023-11-082018-06-222023-11-082016-01http://etd.aau.edu.et/handle/123456789/2960The purpose of the study is to investigate internal determinant factors of dividend payout in private commercial banks in Ethiopia. The study considers the impact of seven variables: profitability, liquidity, leverage, growth, size and previous year’s dividend on dividend payout by using panel data regression technique with a random effect model between years 2009 and 2014. The findings of the study show that last year’s dividend, bank size and growth have statistically significant and positive relationship with banks’ dividend payout. On the other hand, variables profitability and leverage have negative and statistically significant relationship with dividend payout of private commercial banks in Ethiopia. However, the relationship of liquidity and dividend payout is positive but statistically insignificant. The finding of this paper suggests for investors and bank officials to consider the bank’s profitability, leverage, last year’s dividend, size and revenue growth when they make investment and dividend payout decisions. Key Words: dividend payout dividend policy profitability leverage growth sizeen-USDividend payout dividend policy profitability leverage growth sizeThesis