The main purpose of the study was to examine the determinants of dividend payout in Ethiopian private banks. Five years data from 2009/10 to 2013/14 were collected from National bank of Ethiopia and banks audited financial statement. The collected data were analyzed using panel data regression technique. The study used dividend payout as a dependent variable and seven independent variables; they are profitability, liquidity, leverage, lagged dividend payout, growth, size and risk. The finding

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... dicated that among the seven independent variables; lagged dividend payout, growth, size and risk have statistically significant impact on dividend payout; the rest three variables have no statistical significant impact on dividend payout. Therefore, lagged dividend payout, growth, size and risk have a significant impact on dividend payout in Ethiopian private banks and board of directors of banks need to consider these variables while designing their dividend payout policy; on the same token investors need to consider these variables in their investment decisions when they want to make an investment in Ethiopian private banks. Key words: Dividend payout, private banks