Careers Contact us
Menu

AllianzGI Dividend Study 2026

454 billion euros – dividend payouts in Europe projected to rise further in 2026

  • Dividend payments in Europe forecast to rise by 4% in 2026
  • Further increase in dividend payments expected in the financial sector, decline in payments in the consumer discretionary sector
  • Allianz Global Investors Dividend Study 2026 highlights the importance of dividends as a “second income” and an important component of equity returns

07.01.2026 | In 2026, investors can expect to see continued growth in dividend payments in Europe. According to calculations by Allianz Global Investors (AllianzGI)1, dividends paid by companies in the STOXX Europe 600 index could reach around €454 billion in 2026, up from around €437 billion in the 2025 calendar year. This represents an increase of 4% over the previous year. Around €70.4 billion in dividends could be paid by companies from the UK included in the STOXX Europe 600 in 2026, which would be a 4% increase over the previous year (€67.9 billion).

Grant Cheng

“The trend of rising dividend payouts in Europe continues. While payouts will increase at the same rate in 2026 as in 2025, we expect a more significant increase in 2027 due to higher profits for European companies in the 2026 financial year," says Grant Cheng, Senior Portfolio Manager Dividends at AllianzGI. "A downward trend in dividend payouts for 2026 can be observed in the consumer discretionary segment, which includes the automotive and luxury goods sectors, among others. This is due to lower corporate earnings in 2025. We expect dividend payouts to continue rising further in the financial sector, which is expected to remain the largest dividend payer beyond 2026."

The expected dividend yield, i.e. the percentage distribution relative to the current share price, is following the trend of rising dividend payments. For the companies included in the STOXX Europe 600, it is likely to rise to 3.2% this year2, roughly on a par with 15-year German government bonds. For companies from the UK included in the STOXX Europe 600, a dividend yield of 3.2% is expected for 2026. In the European ranking, Norway could take the top spot for 2026 with an expected dividend yield of 5.8%.

AllianzGI Dividend Study 2026: Dividends as a key component of returns and a ‘second income’

Dividends make up a significant – and often still underestimated – portion of the total return on an equity investment and are ideal for generating a ‘second income’, as the Allianz Global Investors Dividend Study 20263 shows once again. Over the entire period of the last 40 years, the annualised total return on equity investments for the MSCI Europe was driven by the performance contribution of dividends by just under 39%. In North America (MSCI North America) and Asia-Pacific (MSCI Pacific), total performance was determined by dividends by just under 21% and slightly more than 49%, respectively.

Dr Hans-Jörg Naumer

“Dividends contribute to overall returns and, due to their steady distribution policy, also bring stability to the portfolio. At the same time, portfolios consisting of companies with higher payout ratios exhibit lower volatility than portfolios consisting of shares with low payout ratios,” says Dr Hans-Jörg Naumer, author of the dividend study and Director Capital Markets & Thematic Research at AllianzGI. “Looking at the sectors, the analysis indicates that portfolios comprising the 25 per cent of highest dividend payers in both the STOXX Europe 600 and the S&P 500 have a significantly higher proportion of utilities, telecommunications and non-cyclical consumer goods. Portfolios with the lowest 25 per cent of dividend payers, on the other hand, are more heavily invested in technology, cyclical consumer goods and energy.”

Companies paying dividends also tend to have a stable dividend policy that is even geared towards increases. Looking at the last 20 years in the STOXX Europe 600, the vast majority of companies tended to increase their dividends compared to the previous year. A significantly smaller proportion of companies reduced their dividends. Dr Hans-Jörg Naumer emphasises: “Thanks to their steady growth and significant contribution to overall returns, dividends are a great way to generate a second income from investments. This extra investment income can then be used for things like children’s education, extra holiday money or for spending in retirement – and that is especially important in times of major disruptive changes.’

The full AllianzGI Dividend Study 2025 can be found here.

Freely usable and editable graphics of the study can be downloaded here.

1 Own analysis based on data from Jefferies, Morgan Stanley, JP Morgan, UBS, and Kepler. Note: From 2026 onwards, AllianzGI will no longer use the MSCI Europe index for its annual dividend growth calculations but will instead use the STOXX Europe 600 index.
2 Own analysis based on data as of 30 November 2024 from Jefferies, Morgan Stanley, JP Morgan, UBS, Barclays and Kepler.
3 Allianz Global Investors Dividend Study 2026

 



Contact:

Marion Leblanc-Wohrer
Tel: +33 17305 7791 | Mobile +33 68515 7454
Email: marion.leblancwohrer@allianzgi.com


About Allianz Global Investors

Allianz Global Investors is a leading active asset manager with over 700 investment professionals in over 21 offices worldwide and managing EUR 580 billion in assets. We invest for the long term and seek to generate value for clients every step of the way. We do this by being active – in how we partner with clients and anticipate their changing needs, and build solutions based on capabilities across public and private markets. Our focus on protecting and enhancing our clients’ assets leads naturally to a commitment to sustainability to drive positive change. Our goal is to elevate the investment experience for clients, whatever their location or objectives.

Data as at 30 September 2025. Total assets under management are assets or securities portfolios, valued at current market value, for which Allianz Global Investors companies are responsible vis-á-vis clients for providing discretionary investment management decisions and portfolio management, either directly or via a sub-advisor (these include Allianz Global Investors assets which are now sub-advised by Voya IM since 25 July 2022). This excludes assets for which Allianz Global Investors companies are primarily responsible for administrative services only. Assets under management are managed on behalf of third parties as well as on behalf of the Allianz Group.

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested.

Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency.

This is for information only and not to be construed as a solicitation or an invitation to make an offer to buy or sell any securities. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer or its affiliated companies at the time of publication. The data used is derived from various sources and assumed to be accurate and reliable at the time of publication. but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or willful misconduct. The duplication, publication, extraction or transmission of the contents, irrespective of the form, is not permitted, except for the case of explicit permission by Allianz Global Investors.

This material has not been reviewed by any regulatory authorities.

This document is being distributed by the following Allianz Global Investors companies: In Australia, this material is presented by Allianz Global Investors Asia Pacific Limited (“AllianzGI AP”) and is intended for the use of investment consultants and other institutional/professional investors only, and is not directed to the public or individual retail investors. AllianzGI AP is not licensed to provide financial services to retail clients in Australia. AllianzGI AP is exempt from the requirement to hold an Australian Foreign Financial Service License under the Corporations Act 2001 (Cth) pursuant to ASIC Class Order (CO 03/1103) with respect to the provision of financial services to wholesale clients only. AllianzGI AP is licensed and regulated by Hong Kong Securities and Futures Commission under Hong Kong laws, which differ from Australian laws; in the European Union, by Allianz Global Investors GmbH, an investment company in Germany, authorized by the German Bundesanstalt für Finanzdienstleistungs-aufsicht (BaFin) and is authorized and regulated in South Africa by the Financial Sector Conduct Authority; in the UK, by Allianz Global Investors (UK) Ltd. company number 11516839, authorised and regulated by the Financial Conduct Authority (FCA); in Switzerland, by Allianz Global Investors (Schweiz) AG, authorised by the Swiss financial markets regulator (FINMA); in HK, by Allianz Global Investors Asia Pacific Ltd., licensed by the Hong Kong Securities and Futures Commission; in Singapore, by Allianz Global Investors Singapore Ltd., regulated by the Monetary Authority of Singapore [Company Registration No. 199907169Z]; in Japan, by Allianz Global Investors Japan Co., Ltd., registered in Japan as a Financial Instruments Business Operator [Registered No. The Director of Kanto Local Finance Bureau (Financial Instruments Business Operator), No. 424], Member of Japan Investment Advisers Association, the Investment Trust Association, Japan and Type II Financial Instruments Firms Association; In mainland China, it is for Qualified Domestic Institutional Investors scheme pursuant to applicable rules and regulations and is for information purpose only. in Taiwan, by Allianz Global Investors Taiwan Ltd., licensed by Financial Supervisory Commission in Taiwan; and in Indonesia, by PT. Allianz Global Investors Asset Management Indonesia licensed by Indonesia Financial Services Authority (OJK).

[Admaster 5072540]

Allianz Global Investors

You are leaving this website and being re-directed to the below website. This does not imply any approval or endorsement of the information by Allianz Global Investors Asia Pacific Limited contained in the redirected website nor does Allianz Global Investors Asia Pacific Limited accept any responsibility or liability in connection with this hyperlink and the information contained herein. Please keep in mind that the redirected website may contain funds and strategies not authorized for offering to the public in your jurisdiction. Besides, please also take note on the redirected website’s terms and conditions, privacy and security policies, or other legal information. By clicking “Continue”, you confirm you acknowledge the details mentioned above and would like to continue accessing the redirected website. Please click “Stay here” if you have any concerns.