Global dividends reached a record $518.7b in Q3 2025, marking a 6.2% year-on-year increase, according to Capital Group’s latest Dividend Watch report. Singapore contributed significantly to this growth, achieving a record payout of $7.4b, driven largely by the banking sector, despite a notable cut from Singapore Airlines.
DBS was a standout performer, accounting for half of the increase in Singapore’s dividends, with a 39% year-on-year growth in its payout. This robust performance helped offset the impact of Singapore Airlines’ dividend reduction, which was necessary due to lower underlying earnings. The aviation sector’s cut was significant enough to reduce Singapore’s Q3 growth rate by over three percentage points.
The report highlights that Singapore’s core dividend growth was 3.5% in Q3, tempered by the aviation sector’s performance. However, topline growth reached 12.5%, supported by larger special dividends and a stronger exchange rate. Year-to-date, Singapore’s dividends have risen 7.4% on a core basis, setting the stage for a record year.
Andy Budden, Equity Investment Director at Capital Group, noted the importance of global diversification for investors, stating, “Firms that consistently pay and grow their dividends typically show solid earnings, healthy cash flow, and disciplined management.”
Globally, financials, software, and transport sectors were key drivers of dividend growth. The US, Asia, and Europe saw significant gains, whilst Australia, China, and the UK experienced weaker performances. Looking ahead, the outlook for 2025 remains positive, with expectations of continued strength in the Pacific region and European banks.
