Based on the trend of dividend payout ratio from 1986 to 2004 in Taiwan, it appears the companies have experienced two different stages of cash dividend policies. Before 1997, the cash dividend payout ratio declines slowly. But starting 1998, the payout ratio raises substantially, and the sum of cash dividend appears the same trend. Investigate the companies that pay cash dividend out, discover that they concentrate on those make a earning, and focus on those have high profit year by year. The sample is selected from listed companies in Taiwan Stock Market from 1988 to 2004 , not including financial and utility companies. This thesis uses binary logistic regression to test the relationship between company¡¦s characteristics and paying cash dividend, and survey whether this characteristics are the reason to make the cash dividend payout ratio raises quickly. The result of this research found that there is positive relationship between the payout of cash dividend, the company size, profitable ability, and free cash flow ratio. Moreover, there is negative relationship between the payout of cash dividend, growing opportunity, and liability ratio. But among the two variables measuring the growing opportunity, the asset growing ratio has a better interpretation in the earlier stage; and the market-to-book ratio does in the later stage. On the base period of 1988 to 1997, use binary logistic regression and portfolios to set up a model to fit the cash dividend policies. The overall empirical evidence implies the company¡¦s characteristic don¡¦t change the companies¡¦ tendency of paying cash dividend. In other words, the phenomenon of cash dividend payout ratio raising actually is caused by the increasing fundamental tendency of the sample companies paying cash dividend.