U.S. companies paid $186.8 billion in dividends in the second quarter of 2026, with core dividend growth reaching 8.7% and median dividend growth at 5.5%
That’s according to Capital Group's Dividend Watch (a quarterly component of its Global Equity Study released in August 2026) which tracks dividend payments from the world's 1,600 largest publicly traded companies, representing approximately 85% of global market capitalization.
It found growth to be broadly based, with 97% of U.S. companies either increasing their dividend or holding it steady during the quarter, suggesting that corporate America is generating meaningful cash, and increasingly choosing to return it to shareholders even as capital expenditure cycles, particularly in artificial intelligence, continue to accelerate.
Recent InvestmentNews reporting found that advisors say dividend stocks are a smart solution for clients seeking income, especially in an inflationary environment.
Technology firms continued to convert strong earnings and AI-driven cash generation into higher payouts.
Globally, technology was the fastest-growing sector, with dividends rising 26.3% on a core basis. Semiconductor dividends surged 62.1%, reflecting the ongoing scale-up of AI infrastructure investment.
Financial companies also contributed significantly, adding $26 billion in global payouts (a 10.1% increase) supported by solid profitability and strong balance sheets.
David Unanue, head of asset class services at Capital Group, the world's largest active fund manager by assets under management according to Morningstar Direct as of June 30, 2026, pointed to the AI investment cycle as a key variable for income investors to watch.
"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," Unanue said. "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."
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.
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.
Capital Group, which manages $3.6 trillion in assets globally as of June 30, 2026, publishes its Dividend Watch report as part of its broader Global Equity Study.
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