Financial ratios such as NPM, ROA, DER, and PBV are used by investors as a guideto determine how company growth will affect their investment decisions in the food andbeverage subsector can benefit from studies that examine the impact of financialperformance on stock returns, with dividend policy variables as moderating variable. Thepurpose of this study was to analyze and determine the effect of Net Profit Margin (NPM),Return on Assets (ROA), Debt to Equity Ratio (DER), Price to Book Value (PBV), anddividend policy on stock returns in the food sub-sector. and beverages as well as the abilityof dividend policy in moderating the relationship between Price to Book Value (PBV) andstock returns. The analytical model used is Partial least Square Structral EquationModeling (SEM-PLS) which consists of validity test, reliability test, hypothesis testing andmoderating effect test. The number of samples used in the research object in 2016-2020 asmany as 12 samples. The results of the study stated that the Net Profit Margin had asignificant effect on stock returns. The results show that Return on Assets has a significanteffect on stock returns. The results show that the Debt to Equity Ratio has not significantlyaffected stock returns. The results state that Price to Book Value has a significant effect onstockreturns.Theresultsstatethatdividendpolicyhasasignificanteffectonstockreturns. The results state that the Debt to Equity Ratio has a significant effect on stockreturns through dividend policy. The results state that Return on Assets has a significanteffecton stockreturn through dividendpolicy.

Keywords:etProfitMargin (NPM),ReturnonAsset (ROA),Debt toEquityRatio (DER),
Priceto BookValue(PBV),dividend policy,stock returns.