Global dividend distributions surged 8% year on year (YoY) in the second quarter of 2026, despite a challenging macroeconomic and geopolitical environment, according to Vanguard’s most recent Dividend Payout Pulse survey.
In total, global dividends reached a record of $881bn, driven primarily by Europe and the UK ($323bn of the final total).
Viktor Nossek, senior manager of investment and product strategic intelligence at the firm, noted financial stocks, which regularly feature among the top dividend payers, were some of the biggest drivers of this.
In continental Europe excluding the UK, dividends grew by 6% year-on-year, with insurers and banks contributing $15.2bn.
This offset a fall in dividend distribution in the consumer discretionary sector, with automotive and luxury goods companies struggling from weak consumer demand, export-related pressures and greater competition.
Meanwhile, in the UK, financials, materials, consumer staples and energy companies contributed to a 12% increase in dividend payouts. Energy firms benefitted from volatile commodity prices as geopolitical conflict has continued to bubble.
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Elsewhere, stronger fundamentals in North America and emerging markets, along with solid balance sheets and flows to commodity companies, have also been supportive.
In North America, dividend payments rose by $19bn or about 9%, primarily owing to large technology companies and investment in AI. The technology sector increased dividend payments by about $7.8bn alone, almost triple the contribution of financial companies in the quarter, but Nossek noted it was starting from a low base.
“In absolute terms, North American technology companies have now reached substantial scale as dividend payers.
“With total distributions of $35bn, the sector has nearly caught up with financials, which paid $35.6bn,” he added.
Nossek also highlighted the hyperscalers, who are now paying more generous dividends. While current payouts are “modest”, if the trend continues, major technology companies may start returning more money to shareholders through dividends.
However, for the rest of the year, experts will be keen to see if the US technology firms will continue to shift towards regular dividend payments, particularly as investors get concerned about an overstretched AI cycle.
These dividends complement the payouts of non-US companies, where financial and energy companies dominate dividends.
“As mature technology companies become increasingly significant dividend payers, they are helping to narrow the traditional divide between value investing – which relies heavily on reinvested income – and growth investing, the latter which has historically been driven primarily by capital appreciation,” Nossek said.
Finally, emerging markets had one of the biggest changes compared with last year, with emerging markets’ dividend distributions spiking by $16.7bn (16.2% year-on-year). This was driven by financials, consumer discretionary, materials and industrial firms, among other sectors.
“This broad-based strength suggests a more robust dividend recovery than might be apparent from looking at individual companies alone,” Nossek said.
In terms of outlook for the next quarter, the manager said emerging markets are expected to be another core area of focus, particularly for more cyclical names.
“The key question is whether stronger cashflows resulting from higher commodity prices will translate into increased dividend payments during 2026,” he concluded.
See also: Vanguard: US financials dominate payouts as global dividends hit new records
