More than half a century has passed since the first studies on dividend policy appeared and brought with it many questions that we still do not know the specific answer to, starting from dividend irrelevance model based on the assumptions of a perfect market. Further studies were based on theoretical considerations of limits of dividend irrelevance theory by gradually removing the assumptions of the model. Thus the models were increasingly approaching real-world conditions. That way a bird in the hand theory, the theory of tax differences and signaling theory were designed. Each theory has stated different opinion and answers pertaining to dividend policy of the company, which will be explained later in this paper. The objectives of this study were to investigate the foundation on which the dividend policy rests and in this respect empirically investigated selected factors. In addition to the four main factors, the work will mention the impact of legal restrictions, industry structure and tax policy as external factors affecting the dividend policy. Out of internal factors the effects of the desire of shareholders, company age, and degree of control in the company, earnings stability, investment opportunities of the company and risk associated with the company will be explained. Empirical research will try to determine how and how influential, profitability, level of debt, concentration of ownership and the size of the company influence the decision-making process a company makes regarding the dividend payment. By using multiple linear regression and other selected statistical tests conducted in a research data processing tools were used. Results were related to three selected Central European countries (Austria, Slovenia and the Czech Republic). On this basis, a conclusion is derived about the observed variables, and profitability is a very important factor in all the selected countries, which can’t be said with certainty for other observed factors that have demonstrated a certain level of variability in results. In the end, conclusion is derived about contribution to the research on dividend policy, however, these results lead us to a conclusion that more detailed theoretical research is needed and variables involved in research needs to be broaden to find answers to questions regarding the dividend policy.