Decision making on amount of cash dividend which is distributed among investors, is a challenging issue and important subject in financial management; because making decision on dividend paid to shareholders determine the amount of money which should be retained to reinvestment. In this research, firstly some variables, based on previous researches, are determined for survey and identification of effective factors on paying cash dividend, so necessary information from ninety four listed companies on Tehran stock exchange during seven years (2001 to 2007) are gathered by panel data.There are eleven factors which they are tested in this research including: leverage and size of company, last year DPS, investment opportunities, operating cash flows, expected EPS for the next year, average dividend of other companies, inflation rate, equity percentage of free float, average of dividend growth rate in last five years and enterprise current EPS.As a result, the relationship of size of company, last year DPS, investment opportunities, expected EPS for the next year and inflation rate are confirmed, but we can not find a meaningful relationship between current DPS and: leverage of company, operating cash flows, average dividend of other companies, equity percentage of free float, average of dividend growth rate in last five years and current EPS.