Corporate dividends and buybacks decline amid macroeconomic risks

Corporate dividend reductions reached a significant milestone in the third quarter of 2026, with 19% of total announcements involving cuts. This represents the highest proportion of dividend decreases since the second quarter of 2020 during the Covid-19 pandemic.

Simultaneously, share buyback volumes are trending toward a 10-year historic low, with only 91 authorizations tracked so far in the quarter. This shift toward cash preservation is being driven by several macroeconomic factors, including massive capital commitments for AI infrastructure, escalating conflicts in the Middle East, and increasing tariff pressures.