Geographically, the fastest dividend growth was seen in Australia, India, the US and Canada, while the UK, Europe and China lagged.
Global dividend payments hit new heights in the first quarter of 2026, with mining companies a key driver, according to Capital Group’s latest Dividend Watch report.
Dividends rose 8.2% in Q1 2026 to a first-quarter record of $419bn, boosted by exchange rates and large one-off special dividends.
The core growth rate – which omits exchange-rate effects and one-off payments – was 5.2% year‑on‑year.
Record $421bn global dividends in first quarter as US payouts jump
Mining companies accounted for one fifth of the global Q1 increase, with gold mining showing strength after the precious metal hit historic highs in 2025.
General financials also saw rapid dividend growth, making up 16.2% of global increases, followed by semiconductors (10.2%,) software (9.5%) and machinery (8.9%).
The three largest paying sectors in Q1 – pharmaceuticals, banks and energy companies – grew their payouts more slowly than the wider market, however.
Energy dividends rose just 3.1%, which Capital Group said reflected 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.
Although heightened geopolitical uncertainty and ongoing cost and energy pressures are increasing costs for some businesses, dividend‑paying stocks can help bring stability to portfolios when markets become more unsettled, explained Alexandra Haggard, head of asset class services, Europe and APAC, at Capital Group.
"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," she added.
Geographically, the fastest dividend 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, meaning local growth rates are less representative of the likely annual picture, Capital Group analysts explained.
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In the UK, dividends rose 7.9% on a topline basis in Q1 2026 to $16.7bn, 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.
UK dividends are expected to improve later in 2026, supported by recovering mining payouts and firmer near-term conditions in the banking sector, according to the report.
Growth would, however, be hampered by the fact that the UK's dividend profile is dominated by mature sectors such as energy, banks and pharmaceuticals which generate slower payout growth than areas currently driving global dividend expansion.
