The study aims to examine the relationship of dividend policy and market price of share of selected Fast Moving Consumer Goods (FMCG) companies listed in National Stock Exchange (NSE), India. The study is conducted for the period of ten years from the year 2009-10 to 2018-19. Four FMCG companies are selected. The sample selection is based on purposive sampling technique from non-probability sampling method. The companies, which are included in Nifty FMCG index and which has no stock split history during the study period are selected. Five independent variables i.e. DPO, DY, RR, DPS and EBDIT per share are taken to measure dividend policy and market price per share is taken as dependent variable. Pearson’s correlation and one way ANOVA methods are applied to measure the relationship. The result shows negative relationship between MPPS-DPO and MPPS-DY while shows positive relationship between MPPS-DPS, MPPS-RR and MPPS-EBDIT per share. The ANOVA test reveals that only dividend yield has no significant difference of selected companies while DPO, DPS, RR, EBDIT per share and MPPS have significant difference of selected companies.

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Keywords: Dividend Policy, Dividend Payout, Market Price of Share, MPPS-EBDIT.