Dividend-paying companies tend to boost their payouts over time, and that translates into a lot of capital for investors. Data from Trustnet found that global dividend payments reached a record $518.7 billion in Q3 2025, representing a 6.2% year-over-year increase. Those payments were on top of $1.14 trillion in dividends throughout the first half of the year, according to Dividend Watch.
While dividends have been steadily increasing, most investors didn’t know that we had just witnessed the largest global dividend payout in history. With many companies poised to raise their dividends in 2026, here’s how you can prepare.
Decide On A High Yield Or High Growth
Every dividend investor must choose between high yields and high growth. While you can end up with both in a single stock, most investments gravitate toward one of those options. Broadcom (NASDAQ:AVGO | AVGO Price Prediction) and Procter & Gamble (NYSE:PG) are both dividend stocks, but they come with vastly different expectations.
Dividend growth stocks like Nvidia can outperform the S&P 500 and deliver high dividend growth rates. For instance, Broadcom hiked its dividend by 10% in Q4, but it only has a 0.79% yield. Procter & Gamble has a much higher 2.56% yield, but it only raised its dividend by 5% last year. Procter & Gamble stock has also trailed the stock market over the past five years.
Broadcom’s dividend growth outpaces the global dividend growth rate, but it will take several years before the AI chipmaker produces a high yield for long-term investors. People who can wait at least 10 years before tapping into dividend income will benefit more from growth stocks like Broadcom. However, investors who need cash flow right now may lean toward picks like Procter & Gamble.
Foreign Currencies Play A Role In Total Dividends
When Dividend Watch measured growth rates over the first half of 2025, the firm provided two metrics: the gross growth rate and the core dividend growth rate. The gross growth rate reflects overall growth, while the core dividend growth rate removes variables like special dividends and exchange rates.
The U.S. dollar weakened in the first half of the year, which resulted in outsized dividends from Japan and Europe. Investors who want to diversify beyond the U.S. dollar can end up with higher yields when the dollar weakens. That weakening happened largely due to tariffs, and if a similar event takes place in the future, it’s good to have a diversified portfolio.
Investors can choose from many international stocks that pay dividends. The Vanguard International Dividend Appreciation Index Fund ETF (NASDAQ:VIGI) and the Vanguard International High Dividend Yield Index Fund ETF (NASDAQ:VYMI) are two great places to start. You can either invest in these funds for broad exposure or investigate their holdings to discover attractive international dividend stocks.
Most Dividend-Paying Stocks Have Strong Financial Footing
The increased global dividend payouts are a bullish indicator with Q1 heading toward its final month. That’s because dividends don’t just magically appear. Corporations must boost their net income to deliver higher dividends for investors. Strong balance sheets are also required for long-term sustainability.
Some companies are better than others, and it’s still important to analyze more than just a dividend stock’s yield. You don’t have to pick individual stocks if you invest in an ETF that offers broad exposure to dividend stocks. That way, you can ride the upside of record dividend payouts without wondering if you chose the right stocks.
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