Dividend payouts from UK‑listed firms surged in Q1 2026, climbing 21.1% to £16.4bn, the strongest first‑quarter total since 2021, according to Computershare’s UK Dividend Monitor. The rise ends a decade of flat or falling payouts and was driven by special returns from Reckitt Benckiser, Zegona Communications and Next. It offers a welcome offset to the buyback surge that has drained dividend yields.

Energy price spikes linked to the closure of the Strait of Hormuz lifted oil‑sector dividends, offsetting currency pressures that trimmed Shell’s sterling payout despite a 3.9% increase in dollar terms. Mining heavyweight Rio Tinto lifted its final dividend 12%, while HSBC delivered a 25% higher April payout in dollar terms, reflecting margins as rates normalise. Higher oil cash flows also buoy mining and banking distributions.

Special dividends surged ninefold to £3.3bn, and 14 of 21 sectors raised underlying payouts, suggesting the dividend revival may persist, albeit at a slower 5.3% annualised pace projected for 2026. Buyback activity, which ballooned to £62bn last year, could retreat toward £54bn as firms like BP and HSBC pause programmes, leaving cash returns increasingly dividend‑centric.