Purpose: Dividend has significant relevance from the perspective of managers, shareholders and potential investors. In this regard the present paper seeks to demystify various financial factors affecting the dividend decision of Indian companies and presents crucial implications. Methodology: The paper has applied OLS panel regression using two models to establish consistency and reliability. In this study, we have examined top 100 companies based on market capitalization during the year 2007 to 2018. Findings: The paper documented evidence pertaining to three most imperative financial variables which positively and significantly affect dividend policy of Indian companies is dividend history, current earnings and investment opportunities. It will have significant implications for managers, shareholders and academician. Implications: Dividend decisions are the one of the critical decisions of the financial management and have serious implications for managers, shareholder and academicians. The paper will provide implications for the predication of firm’s behaviour during financial crisis caused by COVID 19 and give useful insights to investors in their decision making during that period. From the perspective of investors looking for investment in stock with dividend yield, should invest in those companies having higher profitability, pattern of past dividend and opportunities of investment.