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This paper investigates the relevance of dividend policy among retail investors in the Nigerian stock market, revisiting classical dividend theories such as the Dividend Irrelevance Theory, Bird- in-the-Hand Theory, and Signaling Theory within the context of an emerging market. A purposive sample of 300 individual investors were surveyed using a structured questionnaire, and responses were analyzed through descriptive statistics, bar charts, and Ordinary Least Squares (OLS) regression analysis. The findings reveal that 75% of respondents preferred dividend-paying stocks, with 45% showing a strong inclination toward high-dividend equities. Regression analysis indicates that portfolio size and Risk-Aversion are significant predictors of dividend preference (β = 0.1098, p = 0.009; and 0.477, p = 0.026), while age (β = -0.007, p = 0.327) and years of investing (β = -0.003, p = 0.784) and Investment frequency do not significantly influence dividend- related decisions. In reasonable terms, 65% of the variations in dividend preference is explained by our variables, indicating that more behavioral and informational factors may be of essence. An ANOVA test further confirms that education level has no statistically significant impact on dividend preference (F(3, 96) = 0.477, p = 0.699). These results lend partial support to the Bird- in-the-Hand and Signaling theories, while challenging the applicability of the Dividend Irrelevance and Tax Preference Theories in the Nigerian context. The study concludes that dividend policy remains a relevant investment determinant in Nigeria, especially among wealthier investors. It recommends that corporate managers maintain stable dividend policies and that regulators intensify financial literacy initiatives to inform balanced investment behavior.

Dividend Relevance, Investor Behavior, Nigerian Stock Market, Dividend Theories, Portfolio Size. 1. Introduction Dividend policy has long intrigued both academic researchers and mar, forming one of the cornerstones of corporate finance discourse. While corporations may adopt various, investors' reactions to dividends or lack thereof often reflect their deeper financial philosophies, information accessibility, tax exposures, and market expectations. The Nigerian capital market, characterized by high volatility, low institutional,