The S&P/ASX 200 Index (ASX: XJO) delivered investors a total return of 7% last financial year.
That return was comprised of 2.77% capital growth and a 4.23% average dividend yield.
That's an improvement on last year's payout.
In FY25, dividends made up 3.84% of the total 13.81% return.
That was well below the long-term average of about 4.5%.
This last financial year, the market moved closer to the norm.
Image source: Getty Images
What pushed dividend yields higher last year?
The increase partly reflects higher earnings among resources companies due to rising commodity prices.
This contributed to an outstanding performance in the ASX 200 materials sector, which lead the 11 market sectors last year.
Materials stocks soared 47.48% and paid a healthy above-average dividend yield of 4.63%.
The energy sector paid an even higher dividend yield at 5.14% in FY26.
But neither paid the best dividend yield of the 11 market sectors.
That title belongs to a much more defensive segment.
Experts say capital gains tax (CGT) changes may prompt investors to seek better yield.
If that rings true for you, the following list will give you a general guide as to which sectors pay best.
Let's take a look at the dividend yields of each of the 11 market sectors in FY26.
Which ASX sectors delivered the best dividend yields?
The sectors are listed in order of highest dividend yield for FY26.
Utilities
The total return for the S&P/ASX 200 Utilities Index (ASX: XUJ) last year was 11.87%.
Dividends made up 5.98% of that total return.
Energy infrastructure company APA Group (ASX: APA) was the sector's best performer for growth.
APA Group shares rose 24%, and are currently trading on a trailing dividend yield of 5.84%.
Energy
The total return for the S&P/ASX 200 Energy Index (ASX: XEJ) was 14.51%.
Dividends represented 5.14% of that return.
ASX 200 coal producer New Hope Corporation Ltd (ASX: NHC) had the strongest share price growth at 44%.
New Hope Corporation shares have a trailing dividend yield of 4.78%.
Materials
The total return for the S&P/ASX 200 Materials Index (ASX: XMJ) was 52.11% in FY26.
Dividends made up 4.63% of that return.
The best performer was gold explorer, Minerals 260 Ltd (ASX: MI6), which rocketed 508% in FY26.
Minerals 260 does not pay dividends.
The largest company in the materials sector is BHP Group Ltd (ASX: BHP), which has a trailing yield of 3.47%.
Consumer Staples
The total return for the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) was 13.72%.
Dividends represented 3.63% of that return.
Woolworths Group Ltd (ASX: WOW) was the top-performing consumer staples share, rising 29%.
Woolworths shares have a trailing yield of 2.24%.
Financials
The total return for the S&P/ASX 200 Financials Index (ASX: XFJ) was 1.69%.
The index lost 1.89% of its market cap last year, but dividends of 3.58% brought the sector into the green.
New Zealand-based infrastructure investment company, Infratil Ltd (ASX: IFT) was the fastest riser, lifting 29%.
Infratil shares have a trailing dividend yield of 1.22%.
Industrials
The total return for the S&P/ASX 200 Industrials Index (ASX: XNJ) was 5.24%.
Dividends made up 3.55% of that return.
Electro Optic Systems Holdings Ltd (ASX: EOS) shares were the fastest risers, rocketing 261%.
Electro Optic Systems does not pay dividends.
The biggest company in the sector is Transurban Group (ASX: TCL), which has a trailing yield of 4.68%.
Real estate & REITs
The total return for the S&P/ASX 200 Real Estate Index (ASX: XPJ) was a negative 2.24%.
The index dropped 5.32% in FY26, but an average dividend yield of 3.08% mitigated the capital loss.
Property fund manager Charter Hall Group (ASX: CHC) outperformed with capital growth of 19%.
The ASX 200 real estate investment trust (REIT) has a trailing dividend yield of 2.3%.
Communications
The total return for the S&P/ASX 200 Communications Index (ASX: XTJ) was a negative 9.41%.
The sector lost 12.4% of its value, but an average dividend yield of 2.99% partially offset the loss.
Aussie Broadband Ltd (ASX: ABB) shares rose the most, lifting 26%.
Aussie Broadband has a trailing dividend yield of 1.03%.
Consumer discretionary
The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) produced a negative total return of 1.21%.
The index fell 3.56%, but an average dividend yield of 2.35% reduced the impact.
The Eagers Automotive Ltd (ASX: APE) share price experienced the most growth, rising 22%.
Eagers Automotive shares have a trailing dividend yield of 3.43%.
Healthcare
The total return for the S&P/ASX 200 Health Care Index (ASX: XHJ) was a negative 36.15%.
The healthcare index fell 37.4%, and an average dividend yield of 1.25% did little to buoy investors' spirits.
4DMedical Ltd (ASX: 4DX) was the outperformer, with its share price skyrocketing 1,786%.
4DMedical does not pay dividends.
The largest company in the sector is CSL Ltd (ASX: CSL), which has a trailing dividend yield of 3.38%.
The healthcare sector is experiencing an extraordinary bounce back, with value investors returning just last month.
Since the pivot point on 3 June, the healthcare index has soared 23%.
Technology
The total return for the S&P/ASX 200 Information Technology Index (ASX: XIJ) was a negative 36.97%.
The index lost 37.22% of its value, and a tiny average dividend yield of 0.25% was barely noticeable to investors.
The Aussie tech sector is comprised predominately of younger growth companies, and not many pay dividends yet.
ASX 200 tech shares tanked in FY26, with only four shares experiencing capital growth.
The stand-out was Codan Ltd (ASX: CDA) shares, which rocketed 119%.
Codan shares have a trailing dividend yield of 0.8%.
Technology is also on the rebound after bottoming out on 30 March.
