- Global dividends increased 7% to reach US$2.09 trillion in 2025; core dividend growth was 6%.
- A strong fourth quarter closed out the year with a 5.9% base increase and a record payout of US$428 billion.
- Growth was widespread both geographically and sectorally throughout the year.
- The financial and technology sectors drove global gains; the mining, automobile and energy sectors recorded lower payments.
- Japan led global growth, emerging markets were strong; Australia, China and the United Kingdom lagged behind.
- Forecast for 2026: Dividends will increase to $2.2 trillion, up 5.4% overall, equivalent to core growth of 5.7%.
- European dividends increased to $365.1 billion, up 5.8% in basic terms, led by Spain.
According to the latest dividend report, which is part of Capital Group’s Global Equity Study, Global dividends reached an annual record of US$2.09 trillion in 2025, up 7% year-on-year on a gross basis. Core dividend growth was 6% after adjusting for exchange rates, extraordinary payments and timing factors. At the company level, the average dividend growth was 5.8%.
The year ended strongly, with payouts reaching a record fourth quarter of US$428 billion, highlighting the resilience of dividend growth. Revenue and core growth in the fourth quarter were 6.5% and 5.9%, respectively.
Alexandra Haggard, head of asset class services for Europe and Asia-Pacific at Capital Group, stated: “Dividend growth reached record levels in 2025, supported by solid earnings and broad-based strength across regions and sectors, with only a few isolated weak spots. Looking ahead to 2026, there are many encouraging signs for next year, with global stock markets expanding, more companies driving profitability and dividends well supported by earnings prospects. Dividend flows can be a solid indicator of the health and financial stability of a company and, with extensive analysis and selection, active managers like Capital Group can identify companies that distribute and increase their dividends over the long term. “We believe dividends remain an important source of stability for long-term investors.”
Sector trends
The financial sector was the biggest driver of dividend growth in 2025, with the broader insurance and finance sectors posting rapid payout increases of 12.5% and 16.8%, respectively.
Technology posted the second-fastest core growth, led by Information Technology (IT) software and services, which posted a core increase of 13%. Software dividends were generally comparable to those of the automotive sector a decade ago, but in 2025 they were 45% higher, reaching a record US$64.1 billion. The pharmaceutical, utilities, media and machinery sectors, particularly aerospace and defence, also contributed significantly. Only mining, automakers and the oil, gas and energy sector posted lower payouts, reflecting a combination of lower profits across cyclical industries.
Markets
Geographically, growth was widespread, with record payouts in 30 of the 46 markets or territories in the Capital Group² index, including the United States, Japan, Canada, Singapore, Hong Kong, Taiwan and most of Europe. The weakness of the US dollar boosted the number of dollar records.
Japan led the way, with payouts growing twice as fast (+12.5%) as the global average, reflecting greater focus on governance and shareholder remuneration, while the US, emerging markets, Canada and Europe posted core growth of between 6% and 7% over the year. Payout growth in the United States has normalized following a push by big tech companies in 2024, while Europe saw widespread increases across most countries and sectors, with average dividend growth of 6.8%, above the global average.
Australia, with its heavy exposure to resources and slower-growing banks, was a notable weakness. The UK lagged behind due to mining and telecommunications, while in China, pressure on corporate profits was mechanically transmitted to dividends through fixed payout ratios.
Gross dividend growth in Spain of 14.1% translated into a core increase of 12.7%, the highest in the world, once the effects of the strengthening euro and calendar changes were eliminated. Half of the increase came from Spanish banks, which distributed a record €12.2 billion, with Sabadell alone accounting for a quarter of the increase among Spanish companies in our index as it increased its distribution as part of a takeover defense.
2026
The projection for 2026 is total payment growth of 5.4%, a new record of US$2.20 trillion, which is equivalent to core growth of 5.7%.
Mario González: responsible for the Capital Group business in Spain, US offshore and LATAM and Álvaro Fernández: co-responsible for the Spain and Portugal business: “Dividends are one of the most tangible ways for companies to 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 demonstrate that they can grow them sustainably over time offer stability to portfolios. Our latest i dividend report highlights how global dividends reached a record $2.09 trillion in 2025 and payments are forecast to rise to $2.20 trillion in 2026. For investors in Spain, dividends can remain a reliable source of income and resilience in any market conditions.