Dividend Stock Basics

Dividend Stock Yield Guide

Definition of Dividend Yield
The estimated dividend payouts over the next 12 months divided by the price you pay for the shares. For instance, the yield would be 5% if you pay $20 per share for a stock expected to pay $1 per share dividends over the next 12 months.

Here's a rundown on the annual dividend yields that you can expect to receive for various dividend stock categories. These yields apply to normal markets, not current conditions.

Category	Typical Dividend Yields
Banks - Small & Regional	3% - 6%
Banks - Small, Preferred Shares	5% - 8%
Banks - Large	*
Banks - Large, Preferred Shares	5% - 8%
Business Development Corporations (BDCs)	7% - 12%
Canadian Royalty Trusts	6% - 12%
Canadian Income (Business) Trusts	6% - 9%
Closed-End Funds - Debt	5% - 9%
Closed-End Funds - Equity	5% - 8%
Insurance Companies	3% - 6%
Insurance Companies - Preferred Shares	5% - 7%
Manufacturing - Misc.	2% - 5%
Master Limited Partnerships (MLPs) - Coal	7% - 9%
Master Limited Partnerships (MLPs) - Exploration & Production	9% - 12%
Master Limited Partnerships (MLPs) - Pipelines	5% - 8%
Oil - Integrated	3% - 5%
Pharmaceuticals	4% - 6%
Real Estate Investment Trusts - Property	4% - 8%
Real Estate Investment Trusts - Property, Preferred Shares	6% - 9%
Real Estate Investment Trusts - Mortgage & Finance	12% - 20%
Shipping - Dry Bulk	9% - 15%
Telecommunications Service Providers - Wireline, legacy	6% - 10%
Telecommunications Service Providers - Wireless & Wireline	4% - 7%
Tobacco Products	5% - 8%
Utilities	3% - 6%
Utilities - Preferred Shares	4% - 8%
* Most large U.S. banks are not currently paying significant dividends