The use of external financing is a balancing act between higher returns for shareholders versus higher risk to shareholders. Though external financing can boost stock performance of firms, it is still inconclusive as to its impact on performance of firms in developing economies like Nigeria. It is, therefore, against this background that this study sought to investigate the impact of external financing on dividend per share of manufacturing firms in Nigeria and the result of this study reveals that external financing has negative and non-significant impact on dividend per share. In view of this, the financial decision which the firm makes must enhance value for shareholders, potential investors and stakeholders involved with the firm. Also, as a going-concern, it is the wish of investors and investees that the firm should continually exist; therefore, the financial decision of the firm should ultimately help in achieving the overall objective of the firm that is, enhancing shareholder’s wealth maximization.