Dividend payout ratio by industry
Dividend payout ratio is a key metric for investors who want to understand not only whether a company pays dividends, but also how sustainable those dividends may be. It measures the percentage of earnings a company distributes to shareholders, helping investors compare how aggressively different industries return profits versus reinvest them into the business.
The dividend payout ratio is typically calculated by dividing dividends paid by net income. It can also be viewed on a per-share basis by dividing dividends per share by earnings per share.
Dividend Payout Ratio = Dividends Paid / Net Income
Industries with stable earnings and slower growth often support higher payout ratios because businesses have fewer reinvestment needs and more capacity to return cash to investors. Industries with volatile earnings or strong growth opportunities usually operate with lower payout ratios, preferring to preserve capital for reinvestment and financial flexibility.
Average Dividend Payout Ratio by Industry
The average dividend payout ratio can vary significantly across different industries. Here is a table of some common company industries in the US and their average dividend payout ratios as of Sep 2026:
| Industry | Average dividend payout ratio | Number of companies |
|---|---|---|
| Advertising Agencies | 0% | 27 |
| Aerospace & Defense | 8.9% | 67 |
| Agricultural Inputs | 17.1% | 10 |
| Airlines | 9.2% | 16 |
| Airports & Air Services | 0% | 5 |
| Aluminum | 7.6% | 4 |
| Apparel Manufacturing | 20.2% | 14 |
| Apparel Retail | 7.2% | 29 |
| Asset Management | 32.5% | 84 |
| Auto Manufacturers | -0.2% | 17 |
| Auto Parts | 11.3% | 43 |
| Auto & Truck Dealerships | 4.1% | 23 |
| Banks - Diversified | 30.5% | 6 |
| Banks - Regional | 26.7% | 283 |
| Beverages - Non-Alcoholic | 22.2% | 12 |
| Beverages - Wineries & Distilleries | 18.9% | 5 |
| Biotechnology | 0% | 452 |
| Broadcasting | 0% | 12 |
| Building Materials | 15% | 13 |
| Building Products & Equipment | 9.7% | 27 |
| Capital Markets | 12.3% | 60 |
| Chemicals | -3.1% | 13 |
| Coking Coal | 1.9% | 5 |
| Communication Equipment | 0% | 43 |
| Computer Hardware | 0% | 30 |
| Conglomerates | 12.8% | 16 |
| Consulting Services | 7.1% | 16 |
| Consumer Electronics | 0% | 8 |
| Credit Services | 12.2% | 40 |
| Diagnostics & Research | 0% | 42 |
| Discount Stores | 20.6% | 8 |
| Drug Manufacturers - Specialty & Generic | 0% | 48 |
| Education & Training Services | 5.3% | 21 |
| Electrical Equipment & Parts | 3% | 40 |
| Electronic Components | 0% | 38 |
| Electronic Gaming & Multimedia | 0% | 14 |
| Electronics & Computer Distribution | 0% | 8 |
| Engineering & Construction | 6.7% | 40 |
| Entertainment | 0% | 38 |
| Farm & Heavy Construction Machinery | 17.3% | 19 |
| Farm Products | 39.5% | 14 |
| Financial Data & Stock Exchanges | 33.9% | 11 |
| Food Distribution | 11.4% | 9 |
| Footwear & Accessories | 12.7% | 10 |
| Furnishings, Fixtures & Appliances | 12.8% | 23 |
| Gambling | 1.1% | 8 |
| Gold | 7.3% | 34 |
| Grocery Stores | 22.8% | 9 |
| Healthcare Plans | 0% | 10 |
| Health Information Services | 0% | 39 |
| Home Improvement Retail | 35.1% | 6 |
| Household & Personal Products | 28% | 23 |
| Industrial Distribution | 11.4% | 18 |
| Information Technology Services | 0% | 46 |
| Insurance Brokers | 16.9% | 15 |
| Insurance - Diversified | 15% | 11 |
| Insurance - Life | 22.4% | 16 |
| Insurance - Property & Casualty | 19.7% | 38 |
| Insurance - Reinsurance | 16.9% | 7 |
| Insurance - Specialty | 18.9% | 20 |
| Integrated Freight & Logistics | 11.5% | 18 |
| Internet Content & Information | 0% | 46 |
| Internet Retail | 4.1% | 27 |
| Leisure | 9.1% | 24 |
| Lodging | 31.3% | 7 |
| Luxury Goods | 5.7% | 9 |
| Marine Shipping | 25% | 30 |
| Medical Care Facilities | 0% | 38 |
| Medical Devices | 0% | 106 |
| Medical Instruments & Supplies | 0% | 43 |
| Metal Fabrication | 9.3% | 15 |
| Mortgage Finance | 1.4% | 14 |
| Oil & Gas Drilling | -11.8% | 8 |
| Oil & Gas E&P | 14% | 61 |
| Oil & Gas Equipment & Services | 12.8% | 47 |
| Oil & Gas Integrated | 45.2% | 10 |
| Oil & Gas Midstream | 51.6% | 40 |
| Oil & Gas Refining & Marketing | 19.9% | 17 |
| Other Industrial Metals & Mining | -0.6% | 25 |
| Other Precious Metals & Mining | 3.2% | 13 |
| Packaged Foods | 15.8% | 47 |
| Packaging & Containers | 24.5% | 20 |
| Personal Services | 16.1% | 10 |
| Pollution & Treatment Controls | 4.2% | 14 |
| Railroads | 25.5% | 8 |
| Real Estate - Development | 1.7% | 10 |
| Real Estate Services | 7.5% | 26 |
| Recreational Vehicles | 19.1% | 10 |
| REIT - Diversified | 64.8% | 15 |
| REIT - Healthcare Facilities | 136.8% | 17 |
| REIT - Hotel & Motel | 26% | 14 |
| REIT - Industrial | 109.9% | 16 |
| REIT - Mortgage | 77.6% | 38 |
| REIT - Office | 32.9% | 19 |
| REIT - Residential | 62.8% | 19 |
| REIT - Retail | 125.5% | 25 |
| REIT - Specialty | 111.5% | 18 |
| Rental & Leasing Services | 10.6% | 18 |
| Residential Construction | 10.6% | 18 |
| Resorts & Casinos | 8.3% | 16 |
| Restaurants | 13.2% | 43 |
| Scientific & Technical Instruments | 0% | 25 |
| Security & Protection Services | 12.6% | 16 |
| Semiconductor Equipment & Materials | 0% | 29 |
| Semiconductors | 0% | 63 |
| Software - Application | 0% | 172 |
| Software - Infrastructure | 0% | 123 |
| Solar | 0% | 17 |
| Specialty Business Services | 12.4% | 32 |
| Specialty Chemicals | 9.9% | 52 |
| Specialty Industrial Machinery | 16% | 68 |
| Specialty Retail | 9.1% | 33 |
| Staffing & Employment Services | 18% | 20 |
| Steel | 8% | 14 |
| Telecom Services | 0.3% | 33 |
| Thermal Coal | 33.4% | 6 |
| Tobacco | 31.2% | 7 |
| Tools & Accessories | 26.4% | 9 |
| Travel Services | 11.1% | 12 |
| Trucking | 12.2% | 13 |
| Uranium | 0% | 5 |
| Utilities - Diversified | 55.4% | 9 |
| Utilities - Independent Power Producers | 12.6% | 6 |
| Utilities - Regulated Electric | 58% | 33 |
| Utilities - Regulated Gas | 41.1% | 15 |
| Utilities - Regulated Water | 47.5% | 12 |
| Utilities - Renewable | 4.1% | 15 |
| Waste Management | 9.8% | 13 |
As an example, the REIT - Healthcare Facilities industry has an average dividend payout ratio of approximately 136.8%, whereas the REIT - Retail industry has an average dividend payout ratio of around 125.5%. In contrast, the Oil & Gas Drilling industry has an average dividend payout ratio of about -11.8%, and the Chemicals industry has an average dividend payout ratio of around -3.1%.
Please note that these figures are based on industry averages and can vary significantly depending on profitability, growth priorities, cyclicality, and whether earnings are temporarily depressed or unusually strong.
Industries with highest dividend payout ratio
You can explore the top industries with the highest dividend payout ratio in the chart and table below. The chart allows you to apply additional sector-based filters to the industries, enabling you to explore a breakdown of the industries with the highest dividend payout ratio within each sector.
| Industry | Average dividend payout ratio | Number of companies |
|---|---|---|
| REIT - Healthcare Facilities | 136.8% | 17 |
| REIT - Retail | 125.5% | 25 |
| REIT - Specialty | 111.5% | 18 |
| REIT - Industrial | 109.9% | 16 |
| REIT - Mortgage | 77.6% | 38 |
| REIT - Diversified | 64.8% | 15 |
| REIT - Residential | 62.8% | 19 |
| Utilities - Regulated Electric | 58% | 33 |
| Utilities - Diversified | 55.4% | 9 |
| Oil & Gas Midstream | 51.6% | 40 |
Industries with lowest dividend payout ratio
Industries with the lowest dividend payout ratio are shown in the following chart and table. You can use the chart to group industries by sector and find the ones with the lowest dividend payout ratio in each sector.
| Industry | Average dividend payout ratio | Number of companies |
|---|---|---|
| Oil & Gas Drilling | -11.8% | 8 |
| Chemicals | -3.1% | 13 |
| Other Industrial Metals & Mining | -0.6% | 25 |
| Auto Manufacturers | -0.2% | 17 |
| Advertising Agencies | 0% | 27 |
| Airports & Air Services | 0% | 5 |
| Biotechnology | 0% | 452 |
| Broadcasting | 0% | 12 |
| Communication Equipment | 0% | 43 |
| Computer Hardware | 0% | 30 |
Industry Overview of Dividend Payout Ratio
Dividend payout ratios differ widely because industries balance shareholder distributions and reinvestment needs in different ways. Mature businesses with predictable earnings often return a larger share of profits to investors, while growth-oriented companies tend to keep payout ratios low so they can reinvest in expansion.
Industry structure matters as well. Businesses with recurring revenue and modest capital requirements may be able to support higher payout ratios consistently, whereas more cyclical or capital-intensive industries may need to retain earnings to cushion downturns and fund operations through weaker periods.
High Payout Ratio Example: Mature Dividend-Paying Businesses
Industries built around stable, recurring cash generation can often support high payout ratios. For investors, this can be attractive when the underlying earnings base is steady and the company does not require large ongoing reinvestment to maintain competitiveness.
Low Payout Ratio Example: Expanding or Cyclical Industries
Industries with heavy reinvestment needs or more volatile earnings frequently show lower payout ratios. A lower ratio in these cases is not necessarily a negative sign; it may reflect prudent capital allocation and a focus on maintaining flexibility for future growth or economic downturns.
How to Interpret Dividend Payout Ratio
Investors often view payout ratio as a measure of dividend sustainability. A very high payout ratio can indicate that a company is returning most of its earnings to shareholders, leaving less room to absorb setbacks or invest in future growth. Ratios above 100% can be especially risky because they may signal that dividends are outpacing earnings for the period.
On the other hand, a low payout ratio may mean a company has room to raise dividends over time, but it can also indicate that management prefers reinvestment over direct cash returns. Interpreting payout ratios therefore requires industry context and a review of the company’s broader capital-allocation priorities.
Investment Considerations
The dividend payout ratio works best when used together with dividend yield, earnings stability, cash flow coverage, and debt levels. A sustainable dividend typically comes from a combination of reasonable payout policy, resilient profitability, and a balance sheet that can support shareholder returns without compromising the business.