Dividend yield by industry
Dividend yield is one of the most frequently used metrics by income-focused investors. It shows how much cash return a company pays to shareholders each year relative to its stock price. Because payout policies, growth profiles, and capital needs vary widely across industries, average dividend yields can differ substantially from one industry to another.
The dividend yield is calculated by dividing a company’s annual dividend per share by its current share price. It is expressed as a percentage and gives investors a quick way to compare the income return offered by different stocks and industries.
Dividend Yield = Annual Dividend per Share / Current Share Price
Higher dividend yields are often found in mature, cash-generative industries where companies have fewer high-return reinvestment opportunities and return more capital to shareholders. Lower yields are more common in industries that prioritize reinvestment, expansion, or balance-sheet flexibility over regular cash distributions.
Average Dividend Yield by Industry
The average dividend yield can vary significantly across different industries. Here is a table of some common company industries in the US and their average dividend yields as of Jun 2026:
| Industry | Average dividend yield | Number of companies |
|---|---|---|
| Advertising Agencies | 0.1% | 26 |
| Aerospace & Defense | 0.3% | 66 |
| Agricultural Inputs | 1.2% | 10 |
| Airlines | 0.4% | 16 |
| Airports & Air Services | 0% | 5 |
| Aluminum | 0.8% | 4 |
| Apparel Manufacturing | 1.2% | 14 |
| Apparel Retail | 0.7% | 29 |
| Asset Management | 3% | 81 |
| Auto Manufacturers | 0.4% | 17 |
| Auto Parts | 0.7% | 44 |
| Auto & Truck Dealerships | 0.4% | 22 |
| Banks - Diversified | 2.5% | 6 |
| Banks - Regional | 2.5% | 284 |
| Beverages - Non-Alcoholic | 1.1% | 12 |
| Beverages - Wineries & Distilleries | 1.4% | 6 |
| Biotechnology | 0% | 454 |
| Broadcasting | 0% | 11 |
| Building Materials | 0.6% | 12 |
| Building Products & Equipment | 0.8% | 27 |
| Capital Markets | 0.9% | 50 |
| Chemicals | 0.8% | 14 |
| Coking Coal | 0.2% | 5 |
| Communication Equipment | 0% | 43 |
| Computer Hardware | 0% | 30 |
| Conglomerates | 1% | 16 |
| Consulting Services | 0.5% | 17 |
| Consumer Electronics | 0% | 8 |
| Copper | 0.8% | 4 |
| Credit Services | 1.4% | 41 |
| Diagnostics & Research | 0% | 43 |
| Discount Stores | 1% | 8 |
| Drug Manufacturers - Specialty & Generic | 0% | 48 |
| Education & Training Services | 0.3% | 19 |
| Electrical Equipment & Parts | 0.2% | 40 |
| Electronic Components | 0% | 38 |
| Electronic Gaming & Multimedia | 0% | 13 |
| Electronics & Computer Distribution | 0% | 8 |
| Engineering & Construction | 0.2% | 38 |
| Entertainment | 0.4% | 37 |
| Farm & Heavy Construction Machinery | 0.9% | 20 |
| Farm Products | 1.3% | 15 |
| Financial Data & Stock Exchanges | 1.6% | 11 |
| Food Distribution | 0.5% | 9 |
| Footwear & Accessories | 1.3% | 10 |
| Furnishings, Fixtures & Appliances | 1.2% | 24 |
| Gambling | 0.1% | 9 |
| Gold | 0.5% | 34 |
| Grocery Stores | 1.5% | 9 |
| Healthcare Plans | 0% | 10 |
| Health Information Services | 0% | 41 |
| Home Improvement Retail | 2% | 6 |
| Household & Personal Products | 1.8% | 23 |
| Industrial Distribution | 1% | 17 |
| Information Technology Services | 0% | 48 |
| Insurance Brokers | 0.8% | 15 |
| Insurance - Diversified | 1% | 9 |
| Insurance - Life | 2.2% | 15 |
| Insurance - Property & Casualty | 2% | 40 |
| Insurance - Reinsurance | 1.7% | 7 |
| Insurance - Specialty | 2.1% | 20 |
| Integrated Freight & Logistics | 0.7% | 18 |
| Internet Content & Information | 0% | 46 |
| Internet Retail | 0.2% | 27 |
| Leisure | 1% | 24 |
| Lodging | 0.8% | 6 |
| Luxury Goods | 1.1% | 8 |
| Marine Shipping | 1.2% | 28 |
| Medical Care Facilities | 0% | 40 |
| Medical Devices | 0% | 110 |
| Medical Instruments & Supplies | 0% | 43 |
| Metal Fabrication | 0.7% | 14 |
| Mortgage Finance | 0.7% | 13 |
| Oil & Gas Drilling | 1.3% | 8 |
| Oil & Gas E&P | 1.8% | 59 |
| Oil & Gas Equipment & Services | 0.9% | 44 |
| Oil & Gas Integrated | 2.8% | 10 |
| Oil & Gas Midstream | 4% | 40 |
| Oil & Gas Refining & Marketing | 2.6% | 17 |
| Other Industrial Metals & Mining | 0.3% | 23 |
| Other Precious Metals & Mining | 0.3% | 11 |
| Packaged Foods | 1.2% | 44 |
| Packaging & Containers | 2.2% | 20 |
| Personal Services | 1.1% | 8 |
| Pollution & Treatment Controls | 0.2% | 13 |
| Publishing | 0.6% | 6 |
| Railroads | 1.2% | 8 |
| Real Estate - Development | 0.2% | 10 |
| Real Estate - Diversified | 0.3% | 4 |
| Real Estate Services | 0.8% | 28 |
| Recreational Vehicles | 2.1% | 10 |
| REIT - Diversified | 7.6% | 16 |
| REIT - Healthcare Facilities | 5.5% | 18 |
| REIT - Hotel & Motel | 5% | 14 |
| REIT - Industrial | 5.6% | 17 |
| REIT - Mortgage | 12.4% | 38 |
| REIT - Office | 5.2% | 19 |
| REIT - Residential | 5.8% | 20 |
| REIT - Retail | 4.5% | 26 |
| REIT - Specialty | 4.7% | 18 |
| Rental & Leasing Services | 0.9% | 18 |
| Residential Construction | 0.6% | 20 |
| Resorts & Casinos | 0.7% | 16 |
| Restaurants | 1.1% | 42 |
| Scientific & Technical Instruments | 0% | 26 |
| Security & Protection Services | 0.7% | 16 |
| Semiconductor Equipment & Materials | 0% | 28 |
| Semiconductors | 0% | 64 |
| Software - Application | 0% | 168 |
| Software - Infrastructure | 0% | 117 |
| Solar | 0% | 18 |
| Specialty Business Services | 0.7% | 33 |
| Specialty Chemicals | 1.2% | 51 |
| Specialty Industrial Machinery | 0.6% | 68 |
| Specialty Retail | 0.8% | 35 |
| Staffing & Employment Services | 1.1% | 20 |
| Steel | 1% | 12 |
| Telecom Services | 0.2% | 35 |
| Thermal Coal | 2.5% | 6 |
| Tobacco | 2.4% | 7 |
| Tools & Accessories | 1.4% | 9 |
| Travel Services | 0.6% | 12 |
| Trucking | 0.9% | 13 |
| Uranium | 0% | 5 |
| Utilities - Diversified | 3.5% | 9 |
| Utilities - Independent Power Producers | 1.3% | 6 |
| Utilities - Regulated Electric | 2.8% | 33 |
| Utilities - Regulated Gas | 2.8% | 15 |
| Utilities - Regulated Water | 2.4% | 12 |
| Utilities - Renewable | 1.3% | 15 |
| Waste Management | 0.3% | 11 |
As an example, the REIT - Mortgage industry has an average dividend yield of approximately 12.4%, whereas the REIT - Diversified industry has an average dividend yield of around 7.6%. In contrast, the Airports & Air Services industry has an average dividend yield of about 0%, and the Biotechnology industry has an average dividend yield of around 0%.
Please note that these figures are based on industry averages and can vary significantly depending on dividend policy, stock-price volatility, profitability, and whether companies in the industry pay dividends at all.
Industries with highest dividend yield
You can explore the top industries with the highest dividend yield 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 yield within each sector.
| Industry | Average dividend yield | Number of companies |
|---|---|---|
| REIT - Mortgage | 12.4% | 38 |
| REIT - Diversified | 7.6% | 16 |
| REIT - Residential | 5.8% | 20 |
| REIT - Industrial | 5.6% | 17 |
| REIT - Healthcare Facilities | 5.5% | 18 |
| REIT - Office | 5.2% | 19 |
| REIT - Hotel & Motel | 5% | 14 |
| REIT - Specialty | 4.7% | 18 |
| REIT - Retail | 4.5% | 26 |
| Oil & Gas Midstream | 4% | 40 |
Industries with lowest dividend yield
Industries with the lowest dividend yield 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 yield in each sector.
| Industry | Average dividend yield | Number of companies |
|---|---|---|
| Airports & Air Services | 0% | 5 |
| Biotechnology | 0% | 454 |
| Broadcasting | 0% | 11 |
| Communication Equipment | 0% | 43 |
| Computer Hardware | 0% | 30 |
| Consumer Electronics | 0% | 8 |
| Diagnostics & Research | 0% | 43 |
| Drug Manufacturers - Specialty & Generic | 0% | 48 |
| Electronic Components | 0% | 38 |
| Electronic Gaming & Multimedia | 0% | 13 |
Industry Overview of Dividend Yield
Dividend yields tend to be higher in mature industries with stable cash flows and slower growth. Utilities, telecom, pipelines, and some consumer-defensive businesses often fit this profile because their operations can support regular cash distributions and investors value them for income.
By contrast, lower dividend yields are common in fast-growing industries where companies prefer to reinvest cash into expansion, research, or acquisitions. In those industries, management teams may believe that retaining earnings creates more long-term value than distributing them as dividends.
High Dividend Yield Example: Mature Cash-Generating Industries
Industries with stable demand and predictable cash generation can often sustain relatively high dividend yields. These businesses may not deliver rapid revenue growth, but they can appeal to investors seeking dependable income and lower volatility in total returns.
Low Dividend Yield Example: Growth-Oriented Industries
Growth-oriented industries often show low dividend yields because companies retain a larger share of earnings to fund new projects, product development, or market expansion. In these cases, investors are usually accepting lower current income in exchange for the potential of stronger capital appreciation.
How to Interpret Dividend Yield
A high dividend yield is not automatically a positive signal. Sometimes yields rise because a company’s share price has fallen sharply, which can point to underlying business stress rather than attractive income. That is why investors often pair dividend yield analysis with dividend payout ratio, cash flow coverage, and dividend history.
Investment Considerations
When comparing dividend yield across industries, investors should focus on sustainability as much as headline yield. A moderate but well-covered yield may be more attractive than an unusually high yield that depends on stretched payout ratios or weakening fundamentals. A useful review combines dividend yield with payout ratio, earnings quality, free cash flow, and the company’s long-term capital-allocation strategy.