This study examines the effect of dividend policy on firm's returns using data of seventeen (17) manufacturing firms listed on the Nigerian stock Exchange. Employing descriptive statistics, correlation analysis and panel regression technique, where the fixed effect regression was adopted, the findings reveal that current dividend payout, growth opportunity of firms and dividend per share have positive and significant effect on earnings per share, with that of growth having an overwhelming influence. Current dividend payout and dividend per share are both significant at the 5percent level. One lagged dividend payout (previous dividend payout), cash flow and leverage have positive but not significant influence on EPS, while the impact of size is negative and not significant. The study recommends the implementation of effective and result-oriented dividend policies by financial managers of firms as well as sound investment, effective regulatory and supervisory framework by capital market regulators in order to enhance firms' earnings and performance in Nigeria.