UK dividends rise 14.1% to £28.4bn during Q3 2026

 

 

Banks and mining companies drove strongest Q3 payouts since 2019

 

 

• UK dividends increased by 14.1% on a headline basis to £28.4bn during the third quarter, the highest Q3 total since 2019
• Underlying growth – which strips out one-offs and FX – hit 8.4%
• Banks and mining companies accounted for nine-tenths of Q3 growth
• Bank dividends rose 24.5%; mining payouts rose by a significant 89.6%
• Median dividend growth of 5.0% showed broader market resilience
• Special dividends increased to £1.4bn from £93m a year ago
• 2026 headline forecast upgraded to £92.8bn, up 7.3% year-on-year
• Regular dividends forecast at £87.6bn, up 4.8%

 

UK dividends increased significantly by 14.1% (year-on-year) to a headline £28.4bn during the third quarter of 2026, according to the latest Dividend Monitor from Computershare.

 

The report also reveals how strong growth in regular payouts was joined by a sharp rebound in special dividends.

 

Underlying growth, which strips out volatile special dividends and adjusts for exchange-rate movements, reached 8.4%, well ahead of anticipated levels and is the fastest third-quarter increase since 2019.

 

Banks and mining companies together accounted for nine-tenths of the increase in dividends during the quarter.

 

Mark Cleland, CEO of Issuer Services at Computershare, said: “The pronounced strength of the third quarter has significantly boosted what is turning out to be a very positive overall picture for UK dividends in 2026.

 

“Resilient economic growth supported company revenues and profits, while higher-for-longer interest rates and the upswing in commodity markets have provided an additional boost to two of the UK market’s biggest dividend-paying sectors.

 

“Q4 is still likely to be weaker year-on-year, not least because of the large reduction announced by Diageo.

 

“However, with so much of the year’s dividend income already paid, we now anticipate dividends to finish comfortably ahead of 2025 and headline payouts to deliver their strongest annual growth since 2019.”

 

 

Top 100 companies

 

 

The largest companies continued to outperform the wider market, with underlying dividend growth of 8.6% among the ‘Top 100’ firms compared with 5.0% among the FTSE 250.  This performance, according to the report, reflects the concentration of large banking and mining groups in the FTSE 100. 

 

Sectors

 

Overall, 12 of the 20 sectors tracked by the Computershare UK Dividend Monitor increased their payouts. There were, however, notable areas of weakness, with media dividends falling 27.5% following WPP’s reduction. Retail company payouts declined by 7.1% as weaker trading put pressure on cash generation at B&M and WH Smith.

 

 

Gilts

 

 

Higher share prices have however nudged the prospective yield on UK equities down to 3.1%. The ten-year gilt yield has risen to 5.3%, leaving fixed income offering a historically wider yield premium over equities.

 

 

Banks and Mining companies

 

 

Bank dividends rose 24.5%, adding £872m year-on-year and accounting for 40% of the Q3 total dividend increase. Major banks raised ordinary payouts while continuing significant share buybacks following strong profitability and capital generation, said the report. Mining payouts climbed 89.6% on a headline basis and accounted for around half of the quarter’s dividend growth. Higher commodity prices and stronger cash generation drove large increases from companies including Rio Tinto, Glencore, Antofagasta and Fresnillo.

 

 

Median dividends growth

 

 

The median increase at UK company level was 5.0%, a stronger-than-expected result after a prolonged period of relatively sluggish dividend growth across the UK.

 

 

Special dividends

 

 

Special dividends made a major contribution to the headline dividend growth rate during the third quarter, rising to £1.4bn from just £93m a year earlier. Large dividend payments from Glencore followed the company’s disposal of Viterra while Johnson Matthey also released significant payments following the sale of Catalyst Technologies.

 

 

Outlook

 

 

The strong Q3 2026 has materially improved the outlook for the full year, prompting Computershare to upgrade its forecast for regular dividends to £87.6bn, up 4.8% year-on-year. Headline payouts are now expected to reach £92.8bn, an increase of 7.3% and the best annual result since 2019, said the report.

 

Notes  

 

 

1. The Dividend Monitor calculates underlying dividend growth by deducting one-off special dividends from the headline figure and adjusting for movements in exchange rates.
2. The Dividend Monitor is a publication produced by Computershare Investor Services PLC in association with 5i Research UK.  This publication is intended for general information purposes only. It is under no circumstances intended to be used or considered as financial or investment advice, a recommendation, or an offer to sell, or a solicitation of any offer to buy any securities or other form of financial asset or to be relied on by the reader in any way.
3. This publication is not to be considered as investment research and is not prepared in accordance with regulations regarding investment analysis.  Computershare and its officers and employees exclude all liability whatsoever, in negligence or otherwise, for any loss or damage relating to this publication to the full extent permitted by law. Computershare does not warrant the accuracy or reliability of any information contained in this publication and all views, commentary about potential future events and other information set out in the publication is for the purposes of discussion only.
4. Gilts rates move daily and are included on an illustrative basis.