Global dividends started 2026 strongly, rising 8.2% on a topline basis to a first-quarter record of US$419 billion, boosted by exchange rates and large one-off special dividends, according to the latest Dividend Watch, part of the Capital Group Global Equity Study1.
The underlying core growth rate, stripping out exchange-rate effects and one-off payments, was 5.2% year‑on‑year in Q1, a more representative measure of dividend momentum and one that was also reflected in median per‑share dividend growth.
Sector trends
A turn in the commodity cycle meant mining companies were the key driver of Q1 growth after years of cuts driven by weak profitability. They accounted for one fifth of the global Q1 increase; gold mining showed particular strength. General financials (+16.2%), semiconductors (+10.2%,) software (+9.5%), and machinery (+8.9%) also saw rapid core growth.
The three largest paying sectors in Q1– pharmaceuticals, banks and energy companies – grew their payouts more slowly than the wider market. Energy dividends rose just 3.1%, reflecting the pre-oil crisis pressure on profits as well as the impact of share buybacks, while banking distributions were held back by cuts in China, Brazil and Sweden in particular. Pharmaceutical dividends rose 4.3% on a core basis; no company in Capital Group’s index2 made a cut, but some of the largest payers posted only minor increases.
Regional trends
Among the major regions, the fastest growth was seen in Australia, India, the US and Canada, while the UK, Europe and China lagged. Japan, most of Asia and Europe and some emerging markets typically see relatively few payouts in Q1, which means local growth rates are less representative of the likely annual picture.
UK dividends rose 7.9% on a topline basis in Q1 2026 to $16.7 billion, helped by a stronger pound and a large special dividend from a high street retailer. However, on a core basis, growth was just 1.8%, leaving the UK lagging both the global average and most comparable markets.
Capital Group expects UK dividend growth to improve later in 2026, supported by recovering mining payouts and firmer near-term conditions in the banking sector. However, recent strength in banks has been largely cyclical rather than indicative of structural growth, reflecting the sector’s mature profile. While the UK remains one of the world’s highest-yielding equity markets, its dividend profile continues to be shaped by mature sectors such as energy, banks and pharmaceuticals, which are generating slower payout growth than areas currently driving dividend expansion globally, including technology, semiconductors and software.
For the rest of 2026, Capital Group leaves its US$2.20 trillion dividend projection unchanged, indicating topline growth of 5.1% year-on-year. However, special dividends and exchange rates are making a larger contribution than expected, implying core growth of 4.7%, modestly lower than the topline rate.
Alexandra Haggard, Head of Asset Class Services, Europe and Asia-Pacific at Capital Group, said:
“What these trends highlight is that active managers with deep research capabilities are increasingly well placed to identify companies with the capacity and commitment to pay and grow dividends over time.
Over the past decade, global dividends have more than doubled, supported by rising company earnings and a broadening culture of dividend‑paying across markets. The start to 2026 has been encouraging, even amid heightened geopolitical uncertainty and ongoing cost and energy pressures. While these challenges increase costs for some businesses, dividend‑paying stocks can help bring stability to portfolios when markets become more unsettled. In this environment, deep research and selectivity are critical, and active managers are well placed to identify those companies best positioned to sustain and grow dividends over the long term.”
See the full Capital Group Global Equity Study: Dividend Watch Edition Q1 2026 report here .
