This study aims to identify the most important determinants of the rate of return on investment in stocks and the application of it on industrial enterprises, contributed to the ASE, which consists of 91 industrial companies during the study period from 1997- 2009. The study used Multiple Linear Regression Analysis, The Model included a number of independent variables which are the cost of capital, Financial leverage, and growth rate of dividends. The results of the study showed that there is appositive effect and statistically significant for growth rate of dividends on rate of return on investment (dependent variable). On the other hand, the study showed no effect with statistical significance for each of the cost of capital and Financial leverage on rate of return on investment (dependent variable). It turns out that the effect of the growth rate of dividends on the rate of return on investment is not compatible with the hypotheses of the study, while that the effect of each of cost of capital and Financial leverage on rate of return on investment in the stock, consistent with the hypothesis of the study.
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