RESULTSPharmaceutical Company D/E DPS2005 2013 ACGR 2005 2013 ACGRDr Reddy Labs 5.4978 18.7173 16.5485 5 15 14.720269Lupine Labs 11.005 6, 20366 -6.9144 6 .5 4 -5.888363Glaxosmith Kline 0.043976 0.04888 1.32986 24 50 9.6086542Sun Pharma 19.26678 0.41647 -38.078 3.75 5 3.661465Cadila Healthcare 11.83121 16.0693 3.90133 6 7.5 2.8285594 In the period 2005-2013 Dr. Reddy Labs showed the most high growth in dividends paid of 14.72% and a corresponding D/E ratio increase of 18.71%. This points to the fact that Dr.Reddy Labs has adopted an aggressive growth strategy for the last 8 years, funded by financial institutions in the form of long term loans and advances and has also gained the trust of investors by providing them with healthy growth in investment returns dividends. All companies (except Sun Pharma) showed a positive correlation between D/E ratio and DPS AGCR. Sun Pharma showed positive growth in DPS AGCR but a decline in D/E ratio as it used cash to repay outstanding debts in 2012. Sun Pharma showed strong growth performance during this period and the correlation shows that the Dividend payments cannot in themselves provide an adequate perspective on the company's performance. Lupine Labs showed negative growth in both D/E and DPS during the period. DPS's negative ACGR shows the change in policy by Lupine's board of directors to use blunt profits to further the company's growth plans. Lupine, during this period, also undertook FPOs that built their equity funds with a compound growth rate of 10.57% during this period. Lupine has... half the paper... the study is limited to these 5 companies. It is not possible to come to a concrete judgment describing the exact relationship between the ownership model and the dividend distribution, as many factors come into play when making decisions regarding dividends. Such qualitative reasoning is difficult to judge and include in determining the relationship. We have identified the main trends and based our observations on them. The future scope of study may include more robust variables that could be used to better understand the factors that contribute to providing dividend payouts. A longer study duration (we studied the company for 8 years) to reduce any short-term anomalies that may have emerged in the companies' performance. We would also like to provide a comparative study on dividend patterns between the pharmaceutical industry and other industries prevalent in the country.