The present study aims to determine the effect of a company's life-cycle stage, profitability, institutional ownership, and liquidity on dividend policy as well as the effect of dividend policy on firm value. Data were run through logistic regression analysis and ANNOVA test with total sample data of 31 companies in the consumer goods industry sector listed on the Indonesia Stock Exchange over the period 2014-2018. With control variables consisting of asset growth, corporate debt, and investment cash flow, it is determined that the growth and maturity life-cycle stages as well as return on assets of a company had positive and significant effects on dividend policy. Companies at growth and maturity stages provided dividends since they attempted to show to shareholders that the company was under good financial and profitable conditions. Corporate debt also had a significant effect on dividend policy where the relationship was inversely proportional, meaning that companies with large debt ratios tend not to provide dividends. Other results show that there was a significant difference between dividend policy and firm value. Companies that provide dividends tend to be overvalued since it leads to increase in the confidence of shareholders to invest.