Global dividends reached an unprecedented US$518.7bn in the third quarter of 2025, marking a 6.2% year-on-year increase on a topline basis, according to the latest Dividend Watch from Capital Group's Global Equity Study. Core dividend growth, which adjusts for one-offs, exchange rates and calendar effects, stood at 6.1%. Positive momentum was driven by robust results in the US, Asia and Europe, although Australia, China and the UK showed relative weakness. Financials, software and transport emerged as the primary engines of global growth over the quarter. Nearly half of the global dividend increase came from financials, which saw core growth of 11.0% — twice as high as the sector average. Within financials, insurers led with an 18.6% rise, while banks and general financials rose 8.0% and 16.1%, respectively.
In the US, payouts hit a record US$179.3bn, extending a long period of expansion. Over the past 15 years, US dividends have only declined in two quarters, which were during the Covid pandemic. Strong contributions came from the technology sector led by Microsoft, which will distribute almost US$2.4 billion more in dividends this year compared to 2024. Europe's dividend season was relatively quiet, but Poland and Spain delivered double-digit growth, offsetting slower progress in France and the Netherlands. Year-to-date, European dividends are up 6.1%, matching the global average.
Japan maintained rapid dividend growth (+13.0%, core), though seasonal factors limited its impact on global totals. Hong Kong's payouts surged by 15.4% in its peak season, with none of the companies surveyed cutting payouts. Conversely, China saw no core growth, and around a third of companies reduced distributions. However, more broadly in emerging markets there was rapid growth (+11.2%, core), led by India, Saudi Arabia, South Africa and Mexico. The UK's core dividend growth declined by 0.9%, but Australia was the weakest major market. Payouts were down 7.4% due to cuts in mining and energy, placing it at the bottom of global rankings for the year after a weak first half too
Across the globe, 88% of companies either increased dividends or held steady in Q3, with median growth at 5.7%. Firms that consistently pay and grow dividends typically demonstrate solid earnings, healthy cash flow, and disciplined management. Dividends can act as an anchor in uncertain times, as a regular income stream can offer investors an element of resilience during market drawdowns.
Outlook for 2025:
The outlook remains positive for the full year. Japan is expected to contribute more significantly, European banks continue to shine, and Pacific markets show ongoing strength. However, India and Brazil may face potential cuts.
About Capital Group:
Capital Group, established in 1931, is one of the world's largest asset managers, overseeing more than US$3 trillion in long-term assets. The Global Equity Study, including Dividend Watch, analyses the dividend payments of the world's largest 1,600 companies, representing 85% of global market capitalisation.
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Data as at 30 September 2025, attributed to Capital Group unless otherwise stated.
Data supplied by Exchange Data International, supplemented by insight from company sources such as annual reports and results announcements and FactSet.
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