The objective of this research is to analyse if there is a negative relationship between dividend policy and stock price volatility in the German stock market.  The data that was collected for this research consists of the 30 biggest companies listed on the German stock exchange Deutscher Aktienindex known as DAX 30 for the period 2000-2020. Fixed effect model estimated by panel data was applied to find the results of this research. The findings showed that the main variables of dividend policy (dividend yield and payout ratio) were negatively significant correlated with stock price volatility which provides evidence for our hypothesis. The results showed that the control variable earnings volatility had a positive significant relationship with stock price volatility. However, asset growth resulted in an insignificant relationship but the rest of the control variables such as leverage, market value and free float percentage showed a significant negative relationship with stock price volatility.