U.S. Core Dividend Growth Reaches 8.7% in Q2 2026 as Corporate Payouts Continue to Rise, According to Capital Group's Global Equity Study

• U.S. companies paid $186.8 billion in dividends during the second quarter
• 97% of U.S. companies increased or maintained dividends, while median dividend growth reached 5.5%
• Globally, technology led growth with dividends up 26.3%, while financials added $26 billion in payouts, a 10.1% increase
• 2026 dividend forecast upgraded to $2.23 trillion, equivalent to 6.0% core growth

LOS ANGELES, Sept. 9, 2026 /PRNewswire/ -- U.S. companies paid $186.8 billion in dividends in the second quarter, with core dividend growth reaching 8.7%, according to the Dividend Watch, from Capital Group, the world's largest active fund manager¹ and part of a new Capital Group Global Equity Study². The quarterly report tracks dividend payments from the world's largest 1,600 publicly traded companies, representing approximately 85% of global market capitalization, and analyzes trends in corporate payouts across regions and sectors. Growth was broad-based, with 97% of U.S. companies increasing dividends or holding them steady, compared with 88% globally, while median dividend growth reached 5.5%.

Technology firms continued to translate strong earnings and cash generation into higher shareholder payouts, reflecting growing demand tied to AI-related investment and infrastructure. Financial companies benefited from solid profitability, strong balance sheets and investment returns, while energy companies also contributed meaningfully to overall growth.

"Much of the focus on AI has been on its impact on earnings and share prices, but for long-term investors, the real test is what companies do with the cash they generate," said David Unanue, head of asset class services at Capital Group. "The encouraging story behind the report is that companies are showing they can continue investing for the future while also returning capital to shareholders. As the AI investment cycle evolves, active managers like Capital Group will be increasingly focused on distinguishing between companies that are benefiting from AI-driven growth and those that are successfully converting that growth into durable cash flows and sustainable shareholder returns."

Globally, dividends rose 7.9% year-over-year to a record $827.3 billion in the second quarter, equivalent to 7.5% core growth. Technology was the fastest-growing sector globally, with dividends rising 26.3% on a core basis, while semiconductor dividends increased 62.1%, reflecting the continued impact of investment in AI infrastructure. Japan and Pacific ex China and Hong Kong recorded some of the strongest growth, while Europe reached a record level of payouts.

The broader outlook for dividend growth remains supportive, with corporate earnings growth continuing to broaden across sectors and providing a foundation for further increases in shareholder payouts.

The outlook remains positive with the report's upgraded 2026 global dividend projection rising to $2.23 trillion (up from $2.20 trillion). The new projection represents a topline growth of 6.4% and core growth of 6.0% (up from 4.7%). The upgrade reflects stronger-than-expected special dividends, a weaker U.S. dollar and larger-than-expected payouts from the technology sector.

See full report with additional data: Dividend Watch — part of the Capital Group Global Equity Study.

Footnotes

¹ Source: Morningstar Direct as of June 30, 2026. This does not include, money market funds, feeder funds or fund of funds.

² Capital Group Global Equity Study: Dividend Watch – August 2026.

About Capital Group

As Capital Group approaches its 100th anniversary in 2031, its long-term strategy remains firmly rooted in its mission to improve people's lives through successful investing. With over 9,000 associates and 34 offices around the world, Capital Group manages $3.6 trillion in assets for millions of wealth management and institutional clients around the world*.

*As of June 30, 2026.

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SOURCE THE CAPITAL GROUP COMPANIES, INC.