Behaviour Pattern of Dividend and Earnings: A Study on Selected PSUs in India

India is the world’s third largest energy consumer globally. The oil and gas sector is among eight core industries in India. It plays a major role in influencing decision making for all the other important sections of economy. This paper attempts to identify the dividend and earning patterns across the five selected companies from the oil and power sector in India. Through this paper researchers are also able to find out what kind of policy companies are following whether its dividends are paid according to its earnings or not. The study is conducted by collecting secondary sources from selected PSUs for five financial years. The conclusion has drawn from the study that among the five selected companies the BPCL has provided a good dividend pay-out ratio over the study period. Through the analysis it is found that companies have followed different dividend policies like constant, regular or irregular.