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NOTE: This Essay is just for an Educational Purpose Photography Source: Pixabay The role of dividend in financial management field is very essential and it is one of the most controversial subjects. Arnott and Asness (2003) made several studies in order to know the effects of dividend on the growth of organizations. The main purpose of their investigation was to understand whether companies can grow and secure their future through dividends or not. The results of their studies concluded that the future earnings of an organization is found to be fast and increasing if the dividend payout ratio is high, and if the payout ratio is low, the future earnings are decreasing and slow ( Parsian and Koloukhi, 2013). Making dividend policies is one of the most important decisions, which are necessary to be made by the organizations and these decisions are responsible for the stability and growth of any organization (Ouma, 2012). The presence of Islamic laws and shariah in the fina