Global Dividends Rise 10.1% in Q1 2026 as Buybacks Begin to Soften

Key takeaways

• Global dividends reached $424.5bn in Q1 2026, up 10.1% from the same period in 2025. 
• Global buybacks totalled $425.7bn, slightly ahead of dividends, but declined 3.1% year-on-year. 
• The US remained the world’s largest source of capital returns, paying $183.5bn in dividends and executing $266.7bn in buybacks 
• UK dividends reached $17.7bn, up 17.7% year-on-year, boosted by special dividends from Next and Reckitt 
• Financials were the largest source of both dividends and buybacks globally 
• Basic materials delivered the strongest dividend growth of any industry, with payments up 47.1.% from the same period in 2025, supported by demand for critical minerals linked to AI infrastructure 
• Janus Henderson forecasts global dividend growth of 8.3% in 2026, while buybacks are expected to decline 1.1% 

LONDON, 21 July – Global dividends rose to $424.5bn in the first quarter of 2026, up 10.1% year-on-year, according to the inaugural edition of the Janus Henderson Global Dividend and Buyback Index. Dividend growth was broad-based, with meaningful increases across North America, Europe, Japan and the UK, despite a noisy macroeconomic backdrop.

The new index expands Janus Henderson’s long-running dividend research to include share buybacks, providing a more complete picture of how the world’s largest companies return capital to shareholders. In Q1, global buybacks reached $425.7bn, marginally ahead of dividend payments, but fell 3.1% from the same period the previous year, suggesting companies are becoming more selective in their approach to shareholder returns.

Dividends prove resilient as buybacks soften

The first quarter showed a divergence between dividends and buybacks. Dividend payments accelerated, supported by resilient corporate earnings, while buybacks softened against a backdrop of higher-for-longer interest rates, trade uncertainty, and geopolitical risk.

North America continued to dominate global shareholder returns. The US contributed $183.5bn in dividends, accounting for 46.3% of the index total, and repurchased $266.7bn of shares, making it by far

the largest market globally for both dividends and buybacks. US dividend growth was broad-based across sectors, with technology, financials, and energy among the key contributors.

Europe excluding the UK paid $67.4bn in dividends in Q1, up 35.5% year-on-year, boosted by currency and timing effects. Switzerland was the continent’s largest payer, distributing $27.3bn, followed by Denmark at $9.4bn.

UK dividends boosted by special payouts

UK companies paid $17.7bn in dividends in the first quarter, exceeding payouts in any European country except Switzerland. Headline growth was 17.7%, helped by special dividends, including a £3.60 per share special dividend from Next following strong overseas sales, and a special dividend from Reckitt after the divestment of its Essential Home business.

Away from special dividends, UK payouts were supported by a diverse range of companies, including AstraZeneca and Shell. The UK also executed $5.8bn of buybacks in Q1, more than any European country except Germany.

Financials lead payouts, while AI investment supports basic materials

Financials remained the largest contributor to global dividends in Q1, distributing $90.8bn. The sector also led global buybacks, with $110.7bn of repurchases, accounting for more than a third of the index total.

Basic materials saw the strongest dividend growth of any industry, with payouts rising 47.1% over the period surveyed. This was driven by elevated demand for critical minerals such as copper and lithium, which are important inputs for data centres, semiconductors and AI infrastructure.

Technology also remained central to the shareholder return story. The sector distributed $43.7bn in dividends and carried out $66.6bn of buybacks in Q1, underlining the continued importance of major technology companies to global capital returns.

Outlook upgraded for dividends, but buybacks expected to fall

Janus Henderson forecasts global dividend growth of 8.3% in 2026, up from 6.8% in 2025. By contrast, global buybacks are expected to decline 1.1% this year, after rising 6.1% in 2025.

The outlook for dividends remains supported by resilient earnings, although Janus Henderson notes that higher-for-longer interest rates, geopolitical risk, and pressure on consumer-facing sectors remain important risks. Buybacks are expected to remain more cyclical, providing companies with flexibility if conditions deteriorate.

Jane Shoemake, Client Portfolio Manager on the Global Equity Income Team at Janus Henderson, said:

“Amidst what feels like an increasingly uncertain macro backdrop, the surprise has been the strength of earnings around the world. Those earnings almost always result in higher dividends, and that’s exactly what we’re now seeing across a range of industries and regions.

“Buybacks add another layer to the story. The absolute level of repurchases remains substantial, broadly in line with dividends in Q1, but the modest year-on-year decline also shows why they should be treated differently. Dividends are generally long-term board decisions based on sustainability, while buybacks are more discretionary and cyclical in nature. In that sense, dividends remain the stronger signal of confidence, while buybacks act as a more flexible shock absorber.”

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