Background: Sweden has a long history of well-managed family-owned firms, where decisions often involve a trade-off between financial goals and non-financial goals. These trade-offs, more common than in non-family or public companies, influence dividend decision-making, which remains complex and underexplored in Swedish family firms.

Purpose: To broaden the understanding of the drivers behind dividend decision-making, the purpose of this study is to explore how non-financial considerations influence dividend decision-making in Swedish family firms.

Method: This study utilized a qualitative research design, gathering data through semi-structured interviews with three owners, and one CEO and board member in four private Swedish family firms. Guided by the Socioemotional Wealth Theory and using a deductive approach, a thematic analysis was conducted to analyse the empirical data.

Conclusion: This study found that non-financial considerations significantly influence dividend decisions in Swedish family firms. As family firms generally prioritize socioemotional considerations over financial ones, this study suggests that family firms are generally positively inclined to issue a dividend payout. Although, the resulting payout level will likely be restrictive to ensure continuity, controllability, and legacy, three integral non-financial goals.