US dividend growth hits 8.7% in Q2 as AI cash flows surge
Global payouts hit a quarterly record
The picture is equally strong internationally with global dividends up 7.9% year-over-year to a record $827.3 billion in the second quarter of 2026 – equivalent to core growth of 7.5%. Japan and Pacific ex China and Hong Kong recorded some of the strongest gains regionally, while Europe reached a record level of aggregate payouts.
The U.S. outperformed the global average on one important measure: while 97% of American companies maintained or grew their dividends, the comparable figure globally was 88% – a 9-percentage-point gap that underscores the resilience of U.S. corporate payout culture, a point advisors may want to highlight when discussing domestic equity allocations with clients.
Capital Group has upgraded its full-year 2026 global dividend forecast to $2.23 trillion, up from a prior projection of $2.20 trillion. The revised figure represents topline growth of 6.4% and core growth of 6.0% – an acceleration from the earlier core growth estimate of 4.7%. The upgrade reflects stronger-than-expected special dividends, a weaker U.S. dollar, and larger-than-anticipated payouts from the technology sector.
What this means for income-focused portfolios
For advisors managing income-oriented portfolios, the Capital Group data offers several practical takeaways. The breadth of payout growth – spanning technology, financials, and energy – suggests dividend momentum is not concentrated in one sector, reducing the concentration risk that can accompany narrower yield-chasing strategies.
The firm notes that 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 returns.
