<![CDATA[Sharia-compliant equity markets have become an important investment segment in Indonesia, yet the extent to which firm-level financial performance explains stock returns remains empirically unsettled, particularly when dividend policy is considered as a moderating signal. This study examines the effects of the Current Ratio (CR), Debt to Equity Ratio (DER), Return on Assets (ROA), and Total Assets Turnover (TATO) on stock returns, with the Dividend Payout Ratio (DPR) as a moderating variable, for firms listed in the Jakarta Islamic Index (JII) during 2020-2024. A quantitative explanatory design was applied using secondary data from annual reports, audited financial statements, stock-price data, and dividend disclosures. Purposive sampling produced 59 firm-year observations from 12 firms, and the data were analyzed using panel regression and Moderated Regression Analysis (MRA) in EViews 12. The results show that CR has a negative and significant effect on stock returns, whereas DER, ROA, and TATO do not have significant direct effects. DPR does not moderate the relationships between CR, DER, or ROA and stock returns; however, it significantly moderates the TATO-stock return relationship in a negative direction. These findings indicate that dividend policy is more relevant in explaining how asset-use efficiency is translated into market returns than in strengthening the effects of liquidity, leverage, or profitability. The study contributes evidence from sharia issuers by showing that investors may evaluate dividend allocation and reinvestment capacity jointly when interpreting operating efficiency.]]>
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