Global dividends reached a record of $546 billion in the third quarter of 2026, representing a year-on-year increase of 7.5% on a like-for-like basis, according to the latest "Dividend Watch" report, which is part of the "Capital Group Global Equity" study. The underlying growth — which is adjusted for exchange rates, special dividends, and other technical factors — was 7% during the first nine months of the year.
88% of the companies in the Capital Group index increased their dividends or kept them stable, while the average dividend growth reached 5.9%, indicating a widespread improvement, not solely driven by a small number of large payers.
Total growth was 4.9%, somewhat more modest and reflecting the negative impact of fluctuations in exchange rates and one-off special dividends, which were nearly $7 billion lower than the previous year.
Alexandra Haggard, product head for Europe and Asia-Pacific at Capital Group, stated: “Our analysis of the third quarter stock market shows few signs of a significant short-term slowdown. Artificial intelligence (AI) continues to be a major growth driver and increasingly one that transcends the technology sector. The resulting investment cycle is driving demand across the industrial economy as a whole, while improving profitability in the materials, finance, industrial, and some areas of the healthcare sector is providing a broader base for dividend growth.
Risks persist, including high energy costs, trade tensions, and divergences in monetary policy, but the underlying context remains solid, supported by strong cash generation and generally robust balance sheets.”
Sector Trends
The financial sector was the largest contributor to global dividend growth, accounting for a third of the total distributed. Banks increased payments in line with the overall market, while the financial sector as a whole grew by 17.6%, supported by the strength of capital markets, stock market activity, and commission income.
The mining and chemical sectors recorded the fastest growth, with a 21.7% increase in payments. The mining sector accounted for about one-sixth of the global increase, as rising commodity prices and improved cash generation favoured the increase in payments. The technology sector contributed another sixth of the increase, led by Asian companies.
Oil companies showed greater moderation despite high energy prices. Major oil companies continued to favour share buybacks as a more flexible way to return excess cash, rather than rapidly increasing ordinary dividends in response to volatility in oil markets.
Regional Trends
Geographically, the landscape was uneven, although positive. The United States recorded an underlying growth of 5.8%, and 96% of companies maintained or increased their distributions. The United Kingdom was one of the strongest markets, with an underlying growth of 13.2%, driven by the recovery of profits in the mining sector and increased dividend distributions by banks. Australia also benefited from the mining sector's recovery, while China fell below the global average.
The Asia-Pacific region showed particularly strong performance, with an underlying growth of 13.3%. Australia and Taiwan accounted for 82% of the regional increase, driven by the mining sector in Australia and the technology sector in Taiwan. Taiwan was the only major market in the index to set a new record in the third quarter. Meanwhile, Singapore benefited from high distributions from banks, and South Korea from banks and the industrial sector.
Europe recorded solid growth, although the third quarter is a relatively quiet dividend season, making large individual payments have an unusual influence.
Rapid Growth in Spain
So far this year, dividend growth in Spain is by far the fastest among major European countries and ranks near the top globally, with an underlying growth of 16.7% in the first nine months of 2026. This comes despite a seasonally quiet third quarter, where underlying growth reached 18% and nearly a third of the increase was due to a single company: a telecommunications infrastructure operator that introduced an annual distribution of 500 million euros this year as it shifted from expansion to cash generation. The utilities sector was also key, supported by strong profit growth and increased profitability of regulated networks. Meanwhile, the entry of new companies into the Spanish part of the index pushed total growth to 23%.
A better-than-expected third quarter has led Capital Group to raise its global dividend forecast for 2026 to $2.24 trillion, and total and underlying growth is now expected to be at 6.8%, up from 6.4% and 6% respectively three months ago. The outlook for the fourth quarter has also improved, supported by resilient profits and strong cash generation in the financial, mining, and technology sectors.
