Global dividends hit record US$1.14 trillion in first half as Japan leads growth

Global dividend payouts hit a record high in the first half of the year, driven by a weak US dollar that boosted shareholder returns denominated in euros and Japanese yen, according to Capital Group.

Dividends from the world’s 1,600 most valuable publicly traded companies rose 7.7 per cent year on year to US$1.14 trillion, according to a report on Tuesday from the asset-management firm, which oversees US$3 trillion in assets. The firms analysed represented 85 per cent of global market capitalisation.

Core dividend growth, which excludes factors such as special dividends and exchange-rate fluctuations, increased 6.2 per cent. Notably, companies from the Chinese mainland and Hong Kong lagged behind the global average.

“We remain optimistic that the second half of 2025 will continue to show solid dividend growth at the global level,” said Alexandra Haggard, head of asset class services for Europe and Asia-Pacific at Capital Group.

An 11 per cent decline in the US dollar index in the first half helped inflate the converted values of local currency-denominated dividends for European and Japanese companies.

Additionally, an MSCI gauge of global stocks, alongside key benchmarks for US equities, reached record highs this year, as companies reported robust earnings growth despite persistent inflation and global tariffs imposed by the US.