Global dividends reached a record high in the first half of 2025, boosted by a weak US dollar, data from Capital Group has shown.
The asset manager’s Dividend Watch – part of its Global Equity Study – showed global dividends increased 7.7% year-on-year on a topline basis to $1.14 trillion, nearly matching the total for the whole of 2017.
The figure was boosted by the weak US dollar as dividends in Japan and Europe, in particular, were translated at more favourable exchange rates.
Meanwhile, core dividend growth, which adjusts for one-off special dividends, exchange rates and other minor factors was 6.2%.
Capital Group said record dividend levels were reached 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.
However, the US made the strongest contribution to the $71.3 billion year-on-year increase in global 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.
In contrast, UK dividends fell year-on-year in the first half of 2025. 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 the slower growth, 92% of British companies either increased or held steady their dividends in the first half.
The data showed that the financial sector contributed two-fifths of global dividend growth in the first half of the year. The sector saw payouts jump by 9.2% year-on-year on a core basis, reaching a record $299 billion, with banks responsible for just under half of the sector’s overall increase.
Alexandra Haggard, head of asset class services, Europe and Asia-Pacific at Capital Group, said: “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.”
Main image: joanna-kosinska-Uvl3W4XWd4U-unsplash
