The study aimed to examine the effect of institutional ownership, free cash flow, profitability, leverage, and firm size to dividend policy in manufacturing companies listed in Indonesia Stock Exchange (IDX) period of 2012 - 2016. The sampling method used in this research is purposive sampling. The number of samples in this study as many as 33 companies with period of observation for 5 years. Analytical techniques in this study using multiple linear regression with software Eviews 07. The result of this research prove that institutional ownership have positive effect and not significant to dividend policy. Free cash flow have positive effect and significant to dividend policy. Profitability have positive effect and significant to dividend policy. Leverage have negative effect and significant to dividend policy. Firm size have positive effect and not significant to dividend policy.