Objective: The aim of this study was to investigate the relationship between dividend policies on stock prices in listed companies on the stock exchange. In this research, the population consisted of listed companies in the Tehran stock exchange during the years 2009 to 2013. A total of 300 companies were eligible for the study population. Methodology: The financial statements of the above companies have been extracted from the Stock Exchange database. For inferential analysis results of linear regression to determine the significance of hypotheses is used Eviews software. The results showed that have a significant relationship between dividends paid and retained earnings on stock prices. Results: Results of this research are similar to some results of external studies have been done. This issue suggests that perhaps in emerging markets, such as the Iranian capital market paid attention to in the dividend. (Dividends paid and retained earnings). Conclusion: The most important reason on the importance of dividend policy is the impact that to leave on the views of investors about the company. Unpaid dividends by the company are creating pessimism to the shareholders.
