Middle East companies paid $29.2 billion in Q1 dividends while global payouts climbed

Dubai: Companies across the Middle East returned $29.2 billion to shareholders through dividends during the first quarter of 2026, with Saudi Arabia accounting for almost 84% of the regional total.Sign up for our daily business newsletter, Cheques & Balances.Underlying dividend payments in the region increased 4% from the same period last year, according to the inaugural Janus Henderson Global Dividend and Buyback Index.Get updated faster and for FREE: Download the Gulf News app now - simply click here.Headline Middle East dividends were 5% lower year-on-year, although the decline was attributed primarily to payment calendar changes and did not reflect weaker underlying distributions.Saudi Arabian companies paid an estimated $24.5 billion in dividends during the quarter, making the kingdom the region’s largest source of payouts. Qatar ranked second with $2 billion, while UAE companies distributed $1.7 billion.Headline UAE payments were lower than a year earlier because of the timing of Dubai Islamic Bank’s dividend, according to the report.Global dividends reach $424.5 billionGlobal dividends increased 10.1% year-on-year to $424.5 billion during the first quarter, supported by higher payments across North America, Europe, Japan and the UK.The increase came despite higher interest rates, trade uncertainty and geopolitical risk affecting the wider economic outlook.Global share buybacks remained slightly higher than dividends at $425.7 billion, although repurchases declined 3.1% compared with the same period in 2025.Saudi Aramco retains quarterly dividend at $31b despite tough forecasts for oilWhat UAE stock investors are getting - big H1-2024 dividends and 0% trading fee options Saudi Arabia’s PIF-backed companies increase dividendsDividends can be a source of income for anybody: Here's howThe figures point to different approaches among companies returning excess capital to investors. Dividend payments continued to grow, while companies became more selective about repurchasing their own shares.“Amidst what feels like an increasingly uncertain macro backdrop, the surprise has been the strength of earnings around the world," said Jane Shoemake, Client Portfolio Manager on the Global Equity Income Team at Janus Henderson. "Those earnings almost always result in higher dividends, and that’s exactly what we’re now seeing across a range of industries and regions.”US dominates shareholder returnsThe US remained the largest market for both dividends and buybacks, with companies distributing $183.5 billion in dividends and repurchasing $266.7 billion of shares.US dividend payments accounted for 46.3% of the index total, with technology, financial and energy companies among the main contributors.Europe excluding the UK distributed $67.4 billion, representing a 35.5% increase from the first quarter of 2025. Currency movements and the timing of payments contributed to the rise.Switzerland was Europe’s largest dividend payer at $27.3 billion, followed by Denmark at $9.4 billion.Financial companies lead payoutsFinancial companies were the largest source of global dividends and share buybacks during the quarter.The sector distributed $90.8 billion in dividends and completed $110.7 billion in share repurchases, accounting for more than one-third of the global buyback total.Basic materials companies recorded the fastest dividend growth of any industry, with payments increasing 47.1% year-on-year.The rise was supported by demand for critical minerals such as copper and lithium, which are used in data centres, semiconductors and infrastructure supporting artificial intelligence.Technology companies paid $43.7 billion in dividends and carried out $66.6 billion in buybacks during the quarter.Dividends expected to rise furtherJanus Henderson expects global dividend growth to reach 8.3% in 2026, compared with 6.8% during 2025.Global buybacks are forecast to decline 1.1% this year after increasing 6.1% last year.Resilient company earnings continue to support the dividend outlook, although higher interest rates, geopolitical risk and pressure on consumer-facing businesses remain potential challenges.“Buybacks add another layer to the story. The absolute level of repurchases remains substantial, broadly in line with dividends in Q1, but the modest year-on-year decline also shows why they should be treated differently,” Shoemake said.“Dividends are generally long-term board decisions based on sustainability, while buybacks are more discretionary and cyclical in nature. In that sense, dividends remain the stronger signal of confidence, while buybacks act as a more flexible shock absorber.”