Employing statewide temperature anomaly data, the study examines the impact of long-term climate change on corporate dividend policy. An abnormally positive temperature anomaly is associated with a predicted decrease in future dividend policy. Channel tests present significant mediating effects of corporate liquidity, trade credit, and asset-to-credit on the association between temperature anomaly and dividend policy. Firms with heightened cash reserves present an exacerbated effect of temperature anomaly on dividend payout. Under long-term climate change exposure, increased trade credit and financial leverage are critical to future growth prospects, leading to a predicted increase in dividend policy. However, the direct effect of temperature anomaly remains persistent on dividend payout. International and local transition risks moderate the impact of temperature anomaly on dividend policy. Firms that are prone to climate disaster risks present a positive predicted future dividend payout. With a positive predicted increase in dividend policy, the moderation tests suggest that firms may have a suitable risk management strategy to cope with long-term climate-related physical risks. The impact of long-term climate change is pronounced for smaller and younger firms with higher tangibility. The study contributes to prior literature by presenting a long-term and systematic impact of statewide climate change on corporate dividend policy.