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The purpose of this research is to examine the effect of life cycle theory and free cash flow hypothesis toward dividend policy. The life cycle theory was conducted by retained earning to total asset. Free cash flow which is the variable dependend was conduct by the free cash flow ratio, profitability, size, leverage and growth. This study was carried out on the companies that are listed as manufacturing company in Indonesia Stock Exchange. The period of this study is from 2010 until 2017. Purposive sampling method used to select the samples. Total manufacturing companies which include to this study are 152 companies. Multiple regression analysis is used to examine the hypoyhesis and purposive sampling method. According to the hypothesis test, the research findings can be summarized as follows. Life cycle theory, profitability and growth are variables that have influence to dividend policy. While the other variables such, free cash flow, size and leverage do not have influence to dividend policy.