Sharp Growth in Dividends Worldwide

In the first half of 2025, global distributions climbed by 7.7 percent to US$1.14 trillion. The financial sector alone accounted for half of this. In Europe and Germany, the increase was somewhat weaker.

In the first half of 2025, dividends worldwide moved in one direction: upward. They climbed by 7.7 percent to US$1.14 trillion. This figure is almost as high as the total for 2017. Adjusted for currency effects, core growth was still 6.2 percent. The weak US dollar amplified the effect, particularly for distributions in Japan and Europe. These are the findings of the Capital Group Global Equity Study.

Dividend streams can be an important indicator of a company's financial health and stability. Companies that pay and increase their dividends consistently are typically characterized by solid earnings, healthy cash flow, and disciplined management," explains Alexandra Haggard, Head of Asset Class Services, Europe and Asia-Pacific at Capital Group, commenting on the figures.

Financial Sector is Main Driver of Rising Dividends

The report identifies the financial sector as the main driver, with USD 299 billion – an increase of 9.2 percent. Banks were responsible for nearly half of this contribution. The study cites transportation (mainly shipping and airports), mechanical engineering (especially aerospace and defense), and software as other strong sectors. Globally, 86% of companies maintained or increased their distributions to shareholders. The analysis puts median growth at 6.1%.

Japan recorded the highest core growth from January to June at 13.8 percent. That is more than twice the global average. The US made the largest absolute contribution at USD 71.3 billion. In Europe, however, the increase was weaker at 5.6 percent. Among other things, this was due to dividend cuts in the automotive industry.

Automotive and the Chemicals Industry Dampen Dividend Growth in Germany

"In Germany, dividends reached a new record high of €49.1 billion ($54.9 billion) in the first half of 2025, but core growth of 2.9 percent lagged behind the European and global averages due to cuts at leading automotive and chemical companies," explains Arne Tölsner, Head of DACH Client Group at Capital Group. Nevertheless, the overall picture is positive: The median dividend growth of German companies is 10 percent, and most are paying out significantly higher amounts to their shareholders.

Second Half of the Year not Expected to Be Quite as Strong

The study also expects solid figures for the second half of the year. Among the strong countries and markets highlighted in the study are Japan, Spanish utilities, Taiwanese technology and shipping companies, and banks in Singapore. However, regions with currently weaker growth, such as the UK, China, and Australia, are expected to dominate the second half of the year.

The analysis assumes that special dividends, such as those arising from the sale of large corporate assets, exchange rate fluctuations, and calendar effects such as changed distribution dates, can significantly strengthen or weaken nominal growth. However, a stable US dollar could support the overall result. In the long term, high-dividend companies offer stable returns with lower volatility. According to the study, this also applies in times of crisis.

This is a partly automated translation of this german article.