Dividend outlook: modest growth expected in 2026

UK dividend payouts are expected to continue growing in 2026, although the pace of growth is likely to remain modest. According to a recent dividend monitor, total UK dividends reached £87.5bn in 2025, following growth of 1.3% in the fourth quarter¹. This year, payouts are forecast to rise to £88.8bn, representing a 1.5% headline increase.

The stronger finish to 2025 was supported by higher-than-expected dividends from sectors including property, energy and consumer staples. A moderation in exchange-rate impacts, alongside a late surge in special dividends and additional contributions from companies moving up from AIM, also helped support payouts.

Mark Cleland, CEO of Issuer Services (UCIA) at Computershare, noted that “dividend payouts have still not regained pre-pandemic highs,” although he highlighted that rates improved throughout last year. Looking ahead, he added that while there are “no clear indications dividends will grow much faster in 2026,” a median growth rate of 3.7% suggests a healthier underlying trend.

Globally, dividend growth is also expected to continue, albeit at a more moderate pace. Aggregate payouts are projected to rise by 2.9% to $2.47tn² in 2026. While this represents a slowdown from 4.7% growth in 2025, it reflects a return to more normalised levels following the post-pandemic rebound.

Regional expectations vary, with stronger growth forecast in India and the US, a subdued outlook in parts of Asia and mixed prospects across Europe.

¹Computershare 2026, ²S&P Global Market Intelligence Dividend Forecasting 2026

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.