Global dividend payouts reached $421bn in the first quarter of 2026, up from $394bn in the first quarter of 2025, a new record for global dividend payouts, according to the recent Vanguard Global Payout Pulse survey.
Developed markets accounted for almost all net growth, with payouts in North America up by 9% to $205bn, meaning almost half of the dividends were from US companies.
In North America, financials were the biggest driver, representing 31% of global dividend growth, with dividends and share buybacks up following the Federal Reserve stress tests and resilient earnings.
Of the total $205bn in dividend payouts in North America, $45bn came from financial stocks – clear evidence of the sector’s outsized influence.
Meanwhile, distributions in Europe ex-UK rose 34% compared to the prior year. This growth was heavily concentrated in the healthcare sector, with a small number of pharmaceuticals driving almost all the increase, with high dividends in March and solid fundamentals.
“Of the $17bn increase in European payouts overall, $7bn came from the healthcare sector,” Viktor Nossek, investment & product strategic intelligence, Vanguard Europe, said.
Dividends also broadly increased in the UK, Japan, and the Pacific region.
Looking forward, the Vanguard team expects Europe to dominate dividend payouts in the second quarter, reflecting a strong dividend season in April and May.
“Energy and materials stocks could once again become key drivers later in 2026, provided high commodity prices persist amid ongoing geopolitical risks,” Nossek said.
These strong moves in developed markets helped offset declines in emerging markets and China, which had a negative net impact. China’s financial sector experienced a $10bn decline in dividend payouts, which is largely due to timing, with the four largest banks switching to semi-annual dividends and paying out their interim dividends early.
“Emerging markets excluding China also recorded a year-on-year decline, reflecting an exceptionally strong first quarter in 2025, driven primarily by Brazilian financials,” Nossek concluded.
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