UK dividends hit record £35.3bn in second quarter; banks and mining drive most growth

• Regular dividends reached record £34.8bn: up 7.4% on an underlying basis
• Headline payouts up 2.5% to £35.3bn
• Banks distributed record £11.1bn, accounting for four fifths of dividend growth
• Mining payouts jump 27.5% as sector recovers
• Typical company-level growth much lower at 2.8%
• Computershare’s report upgrades 2026 underlying growth forecast to 3.4% but trims headline growth on lower one-off special dividends

UK dividends reached a record £35.3bn during the second quarter of 2026, according to the latest Computershare UK Dividend Monitor.

The report reveals that strong growth in regular payouts more than offset a sharp decline in special dividends:

• Regular dividends rose 7.4% to a record £34.8bn on an underlying basis, stripping out special dividends and exchange-rate movements.
• Headline growth slowed to 2.5% as special dividends fell by three quarters year on year.
• However, median dividend growth at company level was unchanged from the first quarter at just 2.8%, while only 11 of 20 sectors increased payouts year on year.

Mark Cleland, CEO Issuer Services United Kingdom, Channel Islands, Ireland and Africa at Computershare, said: “The aggregate figures for Q2 were positive, but dividend growth remains heavily dependent on a small number of large companies and sectors.

“We are seeing pockets of earnings strength – recently in energy, defence, banking and parts of the mining sector – but the weak link is the domestic economy, which is affecting, for example, consumer-facing industries and housebuilders.

“The outlook remains positive overall, but dividend growth is likely to moderate in the second half of the year as more sectors currently showing slower growth dominate the mix, and as one or two significant cuts already announced take effect.”

Banking

Banks dominated dividend growth, distributing a record £11.1bn, which was up 20.6% in Q2, and accounted for around four fifths of the increase in UK dividends during the quarter.

Persistently high interest rates, strong balance sheets and low loan losses have sustained strong profitability across the sector, according to the report.

Mining

Mining dividends are rebounding this year, rising 27.5% in Q2, as higher prices for copper, silver and gold supported payouts.

Other sectors: a mixed picture

Healthcare and general financials both delivered solid dividend growth.

However, food, drink and tobacco payouts fell 15.9% in Q2, largely owing to a major dividend cut from drinks manufacturer Diageo, although industrial dividends declined 7.9%.

Forecast

Computershare’s report has upgraded its forecast for underlying dividend growth in 2026 to 3.4%, which is up from 3.1%, implying regular payouts of £86.5bn.

However, weaker-than-expected special dividends have prompted a reduction in the headline forecast to £90.5bn.

That figure would still be 4.3% higher year on year, it added.

See the full report here >