The present study is an attempt to analyze the determinants of dividend policy in Pakistan. Four important determinants are identified from the literature i.e. profitability, size, investment opportunities and leverage of firm. A sample of 27 financial firms listed in Pakistan Stock Exchange for the period of 2007 to 2013 has been chosen for this study. This study has analyzed that relationships of variables for financial sector and compared it over time. The analysis has been performed using linear trend analysis. The results have identified profitability, size, leverage and investment opportunities as influential determinants of dividend policy. Supervisor:- Muhammad Ali Kemal