UK dividend payments pass £28 billion in Q3

UK dividends rose 14% in the third quarter of 2026, topping £28 billion and reaching their highest level since 2019. Which stocks paid the most?

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UK companies distributed more than 28 billion during the third quarter of 2026, the strongest payout since 2019.

According to new data from Computershare, the financial administration firm, total dividends in Q3 2026 rose 14.1% from the same period a year earlier, giving income investors larger payments.

Its dividend monitor report found that banks and mining firms led profit distributions, returning more than 8.3 billion to investors.

The strong performance this quarter follows a record Q2 for UK dividends, when companies paid their highest-ever total.

Since two thirds of all dividends are paid from April through September, strong second- and third-quarter growth should offset a slow first quarter and the weaker final quarter that is expected.

Mark Cleland, CEO of issuer services at Computershare, said the third quarter's pronounced strength had greatly improved an already positive outlook for UK dividends in 2026.

He attributed that strength to resilient economic growth, which supported company revenues and profits. Higher-for-longer interest rates and rising commodity markets also gave extra support to two of the UK market's biggest dividend-paying sectors.

Cleland cautioned that distributions could fall in the fourth quarter of 2026, partly because drinks giant Diageo announced in February that it would cut its dividends.

"However, much of this year's dividend income has already been paid, so we expect dividends to finish comfortably above 2025 levels. Headline payouts should record their strongest annual growth since 2019," he added.

What are the best sectors for dividends?

Mining led dividend growth, with payouts climbing nearly 90% - from 2 billion in Q3 2025 to 3.9 billion in Q3 2026.

Miners including Rio Tinto, Glencore, Antofagasta and Fresnillo increased their dividends as commodity prices rose and cash generation improved.

In Q3 2026, banks paid investors 4.4 billion in dividends - 24.5% more than the 3.6 billion distributed during the same quarter last year.

Computershare attributed the increase to higher ordinary payouts from major banks, continued share buybacks, strong profits, and solid capital generation.

The sectors paying the highest dividends are:

Swipe to scroll horizontally Source: Computershare

What's the outlook for income investors?

Strong dividend results in Q3 have prompted Computershare to raise its forecast for 2026, which is expected to deliver the strongest dividend year since 2019.

Total dividends are forecast to hit 93 billion, a 7.3% increase on the 2025 figure. Regular payouts, excluding one-off payments, are expected to reach 8.8 billion, up 4.8% over the year.

Computershare raised its outlook after stronger-than-expected UK economic growth and favourable conditions in the stock market.

Computershare said earnings across the broader market had held up well and predicted that regular dividend payouts would end the year comfortably above 2025 levels.