Achieving sustainable performance in economic enterprises requires optimal liquidity management and the adoption of strategic policies in resource distribution. This research aimed to explain the impact of dividend policy on sustainable performance, considering the mediating role of working capital strategy in defense-affiliated companies. This study was applied in terms of objective and descriptive-correlational in methodology. The statistical population included all defense firms, from which 53 companies were selected as the final sample using the systematic elimination sampling method during the 2016–2024 period. Financial data were extracted from the Codal system, and the data were analyzed using multiple regression models, incorporating diagnostic tests such as the Durbin-Watson test (for autocorrelation, within the 1.5–2.5 range). Findings indicated that dividend policy had a positive and significant effect on return on assets, whereas a negative and significant relationship was observed with production growth, fixed asset growth, and research and development expenses; furthermore, the results of the Sobel test confirmed the mediating role of an aggressive working capital strategy in the relationship between dividend policy and production growth. Ultimately, the findings affirmed that the integration of a smart working capital strategy and dividend policies constitutes a strategic necessity for the sustainable performance of defense-affiliated companies.