This study aims to study the relationship between dividend policy and profitability of a company. This will be a case study research and aims to provide and add to existing empirical evidence by focusing on the dividend policy and profitability of British American Tobacco and studying the relationship between the two variables in general and in the context of the selected company. This study will be based on the positivist paradigm because the phenomenon under consideration is quantifiable and subject to hypothesis testing. This study will be based on deductive reasoning as it uses existing theories about the relationship between dividend policy and profitability and then continues to test the theories in specific circumstances, i.e.,by applying them on the case study of British American Tobacco.
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