The current study aimed to assess the correlation between dividends and stock prices in Tehran Stock Exchange Market. It is applied in terms of the objective, and descriptive-correlational in terms of the method. The statistical population included the companies listed on the Tehran Stock Exchange among which 470 were chosen as the sample by the use of a convenience random sampling. Following the related literature, the multiple linear regression has been used in the current study for which the functional data in 5 years (2015-2019) have been subsequently used in the DATA Panel method. The Eviews 7 Software has been used for hypothesis testing. The results indicated that the coefficient of the variable dividends for each share has been calculated at 0.095. Since this value is positive, it can be concluded the dividend per share in the random sample companies is directly correlated with the share price. The significance level has been equal to 0.000, so, there is a linear correlation between the dividend per share and the share price at the 99% confidence level.
Keywords: Share price, dividend per share, Tehran Stock Exchange, panel data.
