Global dividends started 2026 on a strong note, rising 8.2% to a record 419 billion U.S. dollars in the first quarter, driven by foreign exchange movements and significant one-off special dividends, according to the latest Dividend Watch report, part of the Capital Group Global Equity Study¹. The first-quarter underlying growth rate was 5.2% year over year, a more representative measure of dividend momentum that was also reflected in the average growth of dividends per share.
A shift in the commodities cycle made mining companies the main driver of first-quarter growth, following years of cuts caused by weak profitability. The sector accounted for one-fifth of the global increase during the quarter, with gold mining standing out in particular. The broader financial sector (+16.2%), semiconductors (+10.2%), software (+9.5%), and machinery (+8.9%) also recorded strong underlying growth.
The three sectors that paid the largest dividends during the first quarter—pharmaceuticals, banking, and energy—posted slower distribution growth than the broader market. Energy sector dividends rose only 3.1%, reflecting pressure on earnings prior to the oil crisis, as well as the impact of share buybacks, while banking sector distributions were held back by cuts in China, Brazil, and Sweden in particular. Pharmaceutical sector dividends increased 4.3% on an underlying basis; no company in Capital Group’s index² reduced its dividend, but some of the largest payers recorded only modest increases.
Regional Trends
Among the major regions, the fastest growth was recorded in Australia, India, the United States, and Canada, while the United Kingdom, Europe, and China lagged behind. Generally, in Japan, most of Asia and Europe, as well as in some emerging markets, dividend distributions are relatively limited during the first quarter, meaning local growth rates are less representative of what may be expected for the full year.
The Spanish dividend market started 2026 strongly, posting underlying growth of 13.7%, above the global average, during a seasonally quiet first quarter. Total dividend distributions reached 4.7 billion dollars (4.1 billion euros). The overall growth figure of 50.5% was driven by foreign exchange effects and supported by the addition of an Ibex 35 company to the index.
For the remainder of 2026, Capital Group has maintained its dividend forecast unchanged at 2.20 trillion U.S. dollars, representing year-over-year growth of 5.1%. However, the contribution from special dividends and foreign exchange movements remains greater than previously anticipated, implying underlying growth of 4.7%, slightly below the headline figure.
Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group, said: “What these trends highlight is that active managers with strong research capabilities are increasingly well positioned to identify companies with both the ability and commitment to pay and grow dividends over time. Over the last decade, global dividends have more than doubled, driven by rising corporate earnings and a growing culture of dividend payments across markets.
The start of 2026 has been encouraging, even amid heightened geopolitical uncertainty and ongoing cost and energy pressures. While these challenges increase costs for some companies, dividend-paying businesses can help provide stability to portfolios when markets become more volatile. In this environment, deep research and stock-selection capabilities are critical, and active managers are well positioned to identify those companies best placed to sustain and grow dividends over the long term.”
