The article explores how a company's dividend policy affects the wealth of its shareholders. It looks at whether paying dividends or reinvesting earnings is better for investors. Some researchers say dividends don't impact shareholder wealth, while others argue they do. The study focuses on Pakistani companies to see if dividend payouts affect shareholder wealth, using share prices as a measure. The main goals are to see how retained earnings and dividends affect shareholder wealth, and to analyze the impact of dividends and return on equity on share prices.