Global Dividends Hit Record High
Global dividends surged to a record $1.14 trillion in the first half of 2025, marking a 7.7% increase from the previous year. This growth was primarily driven by the financial sector, which saw a core growth of 9.2% to reach $299 billion. Notable increases were also observed in Japan, the USA, Canada, and parts of Europe.
Japan Leads Growth
Japan played a significant role in driving global dividend growth, with a core growth of 13.8% far surpassing the global average. The country’s record distributions of $54.9 billion reflect historic profit highs and a shift towards higher shareholder returns.
European Trends
Europe saw mixed dividend performance, with a core growth of 5.6% falling below the global average. Leading automotive and chemical companies in Germany faced reductions, impacting overall growth. However, despite challenges, dividend-strong companies remain a stable anchor for investors.
Capital Group Perspective
Alexandra Haggard, Head of Asset Class Services, Europe and Asia-Pacific at Capital Group, expressed optimism for continued dividend growth globally. The significance of dividend trends in assessing company performance and resilience to economic challenges was emphasized.
About Capital Group
Capital Group, celebrating its 90th anniversary in 2021, is a renowned investment manager overseeing over $3 trillion in assets for investors worldwide. Committed to delivering superior returns through a meticulous selection of individual securities, the company operates independently, aligning with long-term investor goals.
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