One of the leading variables in economy has been Investment from the early. Developing countries to achieve economic growth and development require investment. If managers faced with investment projects with positive net present value and limited financial resources, there would be a strong correlation between investment policies and Dividend, so understanding the correlation between these two in both Underdeveloped and developing countries is of importance. This study intends to examine effect of Dividend Yield on investments in fixed assets of active companies. To achieve this, 76 companies among active companies in Tehran stock exchange during 2003-2007 were chosen as statistical samples, and Correlation analysis and ANOVA tests were used to test hypothesis. The results indicate that a significant relationship exists between Dividend Yield and investments in fixed assets of active companies.