This research is aimed to test the market reaction to the announcement of dividend initiation at Initial Public Offering (IPO) company listed in Indonesia Stock Exchange (BEI) for the period of 2011-2016. The sample used in this research is amounted to 50 shares of companies issuing dividend initiation. The method used in this research is the method of event study with the Window event period for 11 days. The result obtained from the study is that the market did not act positively significantly on the announcement of dividend initiation. But it can be seen that the market actually started to react to T + 3 which could mean that the market actually might react but to a slow level. In return before and after the announcement of dividend initiation obtained results there is no significant difference between before and after the announcement of dividend initiation.