• Global buybacks reached $572.0bn in Q2 2026, rising 26.8% year-on-year
• Technology overtook financials as the largest source of buybacks, repurchasing $121.1bn of shares
• Global dividends reached $757.8bn, with underlying growth of 7.3%
• Middle East dividends reached $44.6bn, rising 5.5% on an underlying basis, led by KSA, UAE and Kuwait
By ; Rasha Hagag
Global share buybacks surged 26.8% year-on-year to $572.0bn in the second quarter of 2026, driven by increased profitability among technology and financial companies, according to the latest Janus Henderson Global Dividend and Buyback Index.
Technology was at the centre of the increase, overtaking financials to become the largest source of buybacks globally, with companies repurchasing $121.1bn of shares during the quarter. Strong profitability has so far enabled leading technology companies to combine significant shareholder returns with rising investment in AI infrastructure, including data centres and computing capacity. Technology also recorded the fastest underlying dividend growth of any industry, at 23.5%, with payouts totalling $70.5bn.
Global dividends also remained resilient, reaching $757.8bn in Q2. Underlying dividend growth was 7.3%, with positive underlying growth recorded across every region covered by the Index. Headline growth was lower at 3.2%, largely reflecting payment timing effects.
Financials remain a powerful source of shareholder returns
Financials continued to play a central role in global capital returns, with banks rebuilding dividends towards more normal historical levels following years of recovery and increasingly using buybacks to distribute additional surplus capital. The industry remained the largest contributor to dividends, distributing $239.7bn in Q2, with underlying growth of 8.1%.
The trend was particularly evident in the UK, where companies in the Index distributed $39.5bn in dividends. Growth reached 14.6%, well above the global rate, with banks leading the increase.
Middle East dividends see further gains
Middle East dividends continued to grow in the second quarter, with companies across the region distributing an estimated US$44.6 billion, up 5.5% year-on-year on an underlying basis. Saudi Arabia remained the region’s largest dividend-paying market, accounting for 63.6% of the total with payouts of US$28.4 billion. UAE companies distributed US$13.6 billion, or 30.4% of the regional total, with underlying dividend growth of 7.3%. Kuwait recorded the region’s fastest growth, with payouts rising 45.0% on an underlying basis to US$1.8 billion.
Meshal AlFaras, Managing Director, Head of Middle East, Africa & Central Asia at Janus Henderson Investors, said: “The latest figures show the growing contribution Middle Eastern companies are making to global dividend income. Saudi Arabia remains the region’s dominant dividend market, while the UAE continues to record healthy growth and Kuwait saw a particularly strong increase this quarter. From what we are seeing on the ground, investors are taking a growing interest in the income opportunities available across the region. We believe Middle Eastern companies have an increasingly important role to play in a globally diversified income portfolio.”
Outlook for the rest of the year
Janus Henderson forecasts global dividend growth of between 5 to 6% in 2026, while buybacks are expected to grow around 7 to 8%.
The outlook for dividends remains supported by resilient corporate earnings and strong cash generation across financials and technology. Dividends remain comparatively well protected, with companies generally placing a high value on maintaining regular distributions even when the economic backdrop becomes more difficult.
Jane Shoemake, Equities CPM Lead, EMEA at Janus Henderson, said:
“We’re seeing a shift in how companies think about returning capital. Dividends remain an important long-term commitment, but buybacks give management teams much more room to respond as their priorities change. That flexibility is particularly important in technology, where the scale of investment in AI is forcing companies to balance shareholder returns with significant demands on capital. As those investment requirements grow, buybacks are likely to be the first lever companies adjust, rather than regular dividends.
“That same distinction helps explain what we’re seeing in financials. Banks have spent years rebuilding their dividend bases and are now increasingly using buybacks to return surplus capital without committing themselves to permanently higher payouts. More broadly, this is becoming a much more selective market, where strong earnings still support shareholder returns, but where that growth comes from depends on the structural and competitive forces facing each sector.”
