Energy Sector Offers 4.30% Average Dividend Yield in 2025.

Income investors seeking high yields are drawn to the Energy sector, which often boasts the highest average dividend yield. The sector's overall yield for 2025 is 4.30%, followed by Real Estate. A notable option in the midstream segment is SRV, offering a 12% yield without the need for a K-1.

Income investors seeking high yields are drawn to the Energy sector, which often boasts the highest average dividend yield. The sector's overall yield for 2025 is 4.30%, followed by the Real Estate sector, which yields 3.93%. Within the Energy sector, the midstream sub-sector stands out, with a dividend yield of approximately 5% [1].

A notable option in the midstream segment is the NXG Cushing Midstream Energy Fund (SRV), which offers a 12% yield without the need for a K-1 tax report. SRV, a closed-end fund (CEF), sends investors a 1099-DIV at tax time, simplifying the tax reporting process. SRV's investment objective is to obtain a high after-tax total return from a combination of capital appreciation and current income, with a focus on midstream energy investments [1].

SRV began in 2007 and has an asset base of $174M, with 39 holdings and an average daily volume of 28K. The fund has paid a $.45 monthly distribution since September 2022, giving it a 5-year distribution growth figure of 21.83%. At its 7/31/25 closing price of $42.99, SRV yielded 12.56% [1].

In the Real Estate sector, private real estate has historically provided competitive long-term total return potential compared to US equities and bonds. Over the past 30 years, US private real estate’s historical risk-adjusted returns have been closer to US stocks than US bonds, but its volatility has been closer to US bonds than to US stocks [2].

References:
[1] https://seekingalpha.com/article/4807489-srv-12-percent-yield-on-midstream-assets-no-k-1
[2] https://www.invesco.com/us/en/insights/private-real-estate-income-returns.html