Core dividend growth over the year was 6% after adjusting for exchange rates, one-off payments and varying calendars.
Global dividends climbed by 7% to just shy of £2.1trn in 2025, a record high.
According to Capital Group's latest Dividend Watch, this was driven by payouts from the financial sector, with insurance and general financials posting rapid dividend increases of 12.5% and 16.8%, respectively.
Core dividend growth over the year was 6% after adjusting for exchange rates, one-off payments and varying calendars.
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"Dividend growth reached record levels in 2025 supported by robust earnings and broad based strength across regions and sectors, with only limited pockets of weakness," said Alexandra Haggard, head of asset class services, Europe and Asia-Pacific at Capital Group.
Technology posted the second-fastest core growth, spearheaded by software and IT services, which delivered a 13% uptick. Major contributions also came from the pharmaceuticals, utilities, media and machinery sectors, with aerospace and defence reporting a notable rise amid increased commitment from governments to spend more on defence.
Only mining, car makers and oil, gas and energy produced lower payouts, due to a combination of weaker profits in cyclical industries.
Of the 46 markets or territories in the Capital Group index, 30 posted record dividends, including the US, Japan, Canada, Singapore, Hong Kong, Taiwan and much of Europe.
Japan led the pack, with payouts surging 12.5%, twice as fast as the global average. This reflected greater focus on governance and shareholder remuneration, according to Capital Group.
Emerging markets reported core dividend growth of 7.1% while the US, UK, Canada and Europe ex-UK chalked up 6.1%, 1.9%, 7.8% and 5.8%, respectively.
A sharp decline in one-off special dividends saw UK shareholder payouts remain flat at $93.6bn.
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Capital Group's head of UK and Ireland client group, Chris Miles, said: "Dividends are one of the most tangible ways companies share their success with investors, and in an environment dominated by geopolitical uncertainty, tariff tensions and alternating phases of volatility, companies that pay dividends and show they can grow them sustainably over time offer stability to portfolios."
In 2026, a 5.4% increase in topline payout growth has been forecast, which will see dividends hit a new record of $2.2trn, equivalent to core growth of 5.7%.
"Looking at 2026, there are many encouraging signs for the year ahead with global equity markets broadening, more companies driving returns and dividends well supported by the earnings outlook," Haggard said.
