The study examined the effects of liquidity on dividend policy of quoted healthcare firms in Nigeria between 2011 and 2020. The study adopted an ex-post facto research design. The population for the study consisted of all the healthcare firms listed on the Nigerian Stock Exchange as at 31st December 2020, with a sample size of 6 firms using convenience sampling technique. The dependent variable was measured by dividend payout ratio and dividend payment propensity and the robust pooled ordinary least square(OLS) regression (dividend payout) and pooled logistic regression (dividend payment propensity) while the independent variable was proxy by current ratio, quick ratio and cash ratio. Three hypotheses were tested and the results showed that current ratio has noticeable impact on dividend payout and dividend payment propensity, cash ratio has positive and important effect at 5% on dividend payment and unimportant impact dividend payment propensity while quick ratio has positive effect on dividend payout and dividend payment propensity. The study concluded that liquidity has positive effect on dividend policy of the quoted healthcare firms in Nigeria. It was therefore recommended that there is need for the firms to improve their liquidity position in order to enhance dividend policy adopted by the organization.