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Global dividends climbed by 7.7% year-on-year in H1 2025 to an unprecedented US$1.14 trillion.
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Core dividend growth rose by 6.2% year-on-year when excluding one-off payments, currency effects and other minor factors.
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The financial sector led the surge, with core dividend growth up 9.2% year-on-year to a record US$299 billion.
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Record topline payouts were recorded in the US, Canada, Japan, several European nations and select Emerging and Pacific markets.
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By contrast, dividends from the largest UK-listed companies dipped slightly by more than 1%, from US$53.3 billion to US$52.7 billion (£40 billion) in H1 2025.
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Despite slower growth, 92% of British companies either increased their dividends or kept them unchanged in the period.
According to Dividend Watch, part of the Capital Group Global Equity Study¹, global dividends surged in the first half of 2025, rising 7.7% year-on-year on a topline basis to a historic US$1.14 trillion. This figure is close to matching the total dividend payout for the entirety of 2017.
The headline total benefitted from a weaker US dollar, which meant that dividends in regions such as Japan and Europe were translated at significantly more favourable exchange rates. However, when adjusted for one-off special dividends, currency fluctuations and other minor factors, core dividend growth stood at a robust 6.2%.
Alexandra Haggard, Head of Asset Class Services for Europe and Asia-Pacific at Capital Group, commented: “2025 is shaping up to be another good year for global dividends, with a strong first half and well-balanced growth across regions and sectors. We remain optimistic that the second half of 2025 will continue to show solid dividend growth at the global level.
“Dividend streams can be a strong indicator of a company’s financial health and stability. Firms that consistently pay and grow their dividends typically demonstrate solid earnings, healthy cash flow, and disciplined management. By tracking dividend trends, investors can gain a better understanding of companies’ performance and their resilience to economic challenges.”
Financials are key drivers in 2025
Examining sector patterns, a combination of its large size and favourable economic conditions meant the financial sector contributed two-fifths of global dividend growth in the first half of the year. The sector saw payouts increase by 9.2% year-on-year on a core basis, reaching a record US$299 billion. Banks were responsible for just under half of the financial sector’s overall increase, with the top 13 banking contributors to H1 dividend growth coming from different markets, indicating broad-based global strength.
Other sectors that experienced robust growth included transport, in particular shipping and airports, machinery, particularly aerospace and defence groups, and software.
Globally, 86% of companies increased dividends or held them steady in H1, with median core dividend growth at company level standing at 6.1% year-on-year.
Japan has led 2025’s dividend growth, but records abound across the world
Topline totals in H1 reached record levels in the US, Canada, Japan, much of Europe, and some emerging and Pacific markets, although there was notable weakness in Australia, Brazil, Italy, China and the UK.
Growth was strongest in Japan, where core payouts rose 13.8% year-on-year, more than twice the pace of the wider world. Record payouts of US$54.9 billion reflect profits at all-time highs and a shift in corporate culture that is returning more capital to shareholders.
The US made the strongest contribution to the US$71.3 billion year-on-year increase in global H1 payouts, owing to its sheer size. Its core dividend growth rate of 6.1% was in line with the global average, although lower one-offs held back the topline increase.
Q2 is Europe’s key dividend season, and growth was slower this year compared to the last four years. Core H1 dividend growth of 5.6% year-on-year was below that of the rest of the world, with cuts from European car manufacturers, in particular, knocking growth in the region back by one-third in the first half of the year.
Mining sector weighs on UK dividends
UK dividends fell year-on-year in the first half of 2025, in contrast to the rise seen globally. This divergence has placed the UK on a more subdued track, with core dividend growth at just 3.8%—well below the global average of 7.7%.
Despite slower growth, 92% of British companies either increased their dividends or held them steady in H1. The UK’s pharmaceuticals and automobiles sector drove growth in the first half, while cuts in the mining sector kept core dividend growth below that of the wider world, extending the period during which UK dividends lagged.
Chris Miles, Head of UK and Ireland Client Group said: “Dividend-paying companies have long served as a port in the storm, offering investors a cushion when markets turn choppy. They can represent a compelling anchor for clients seeking resilience and reliability because they aim to deliver income even in downturns.
“The overall UK dividend growth in the first half of 2025 was modest at 3.8%, trailing the global average of 7.7%. Yet, an impressive 92% of British companies either raised or maintained their payouts. This resilience is notable given sector-specific pressures—particularly in telecoms and mining—that dragged down aggregate performance. While headline figures suggest the UK is lagging global peers, the underlying stability across most firms points to a cautious but deliberate path forward.”