SUMMARY
Forecasting earnings have a valuable status for investments so that the idea of creating highly efficient business without access to and the presence of predictable earnings seems impossible. In other words, forecasts have become much more important than their past periods. Accordingly, in this study, future earnings and their impact on financing through retained earnings was assessed with regard to the payable dividends for 26 pharmaceutical companies listed in Tehran Stock Exchange for the time period of 2005 to 2012. The investigation of linear correlation matrix of these variables shows a positive relationship between financing through retained earnings and forecasting earnings of companies and negative relationship between payout dividends and forecasting earnings. The results of this study showed that forecasting earnings has a positive impact on financing through retained earnings of these companies and in the opposite direction, payout dividends had a negative impact on this variable.