Investors can take reassurance from the strength of global dividends, with the UK a notable outlier.
- Global dividends rose 6.2% to $518.7 billion, a record for the third quarter
- The strength was led by financials and parts of the technology sector
- The UK was a notable laggard with payouts rising just 1.4%
Amid fears of a bubble in global stock markets, any signs of corporate health are welcome. Global dividend data released from Capital Group suggests that companies may have shrugged off tariff concerns and are confident enough to raise their payouts to investors. In spite of fears of a US-led economic slowdown, 88% of global companies either held or raised their dividends in their third quarter of the year.
Overall dividends rose 6.2% to $518.7 billion, setting a new record for the third quarter. This suggests investors can increasingly rely on a dividend cushion should markets start to wobble. However, there were notable patterns to dividend strength and similar concentration problems to those seen in the wider market.
A quarter of the dividend growth came from just five companies, all of which were in the technology, financial or energy sectors. Microsoft led the way, distributing $2.4bn more in 2025 than in 2024, a double-digit rise on last year. Broadcom, Oracle, JPMorgan Chase and Exxon were the other four contributors to the rise in Q3 payouts.
Financials accounted for nearly half of global dividend growth in Q3, led by banks and insurers. The sector saw dividends rise 11.0% on a core basis. Software & IT services were the other notable areas of strength, where dividends rose 17.1% on a core basis, with most of that growth coming from India and the US.
The weakest spot was the mining and chemicals sector, where dividends dropped 7.4%. Gold miners were a bright spot, but other companies were hit by weaker commodity prices and increasing requirements for capital investment. Companies have also prioritised share buybacks.
Weakness in the mining sector contributed to anaemic growth in the UK market. UK companies raised their dividends just 1.4%, which will do little to dent the view of the UK as an unexciting and low growth market. Other developed markets fared better. US payouts rose 6% to $179.3bn, but Japan was the real success story with growth of 13% over the quarter, a sign that the country’s reform story remains very much intact. The data provided investors with another reason to like emerging markets, where dividends grew 11.2% – led by India, Saudi Arabia, South Africa and Mexico.
The data may provide some comfort to investors worried about the trajectory of global stock markets over the next few months. Even if there is a wobble on pricing, it is reassuring that companies feel sufficiently confident to grow their dividends.
