Citigroup is now restricted under a federal bailout from making quarterly payouts of more than a penny a share. Citigroup has the 3rd biggest dividend payouts in the S&P500, with its total $10.78 billion exceeded only by General Electric Co.’s $12.53 billion and Bank of America Corp.’s $11.36 billion.

But this is simply the latest bank stocks to reduce sharply its dividend yield. Financial services has typically been a reliable sector for dividend investors, making up about 34 percent of S&P dividend payouts at the beginning of last year. But that proportion has now shrunk to about 21 percent. This year, financial companies have accounted for 41 of the 50 dividend cuts by stocks in the S&P 500, and nearly $32 billion of the total $34.4 billion in reduced payouts, S&P found. Bank of America last month broke a 30-year string of increasing annual dividend payments and slashed its usual quarterly payout in half.

With most REIT in disarray, the list of stocks paying consistently distribute sizable portions of earnings back to shareholders is getting shorter. One sector to look for the highest yields is utilities. NSTAR, a Boston-based gas and electricity distribution company, last week approved a 7.1 percent increase in its dividend up to an annual payout of $1.50 from $1.40. AGL yanked its dividend yield to 5.9 percent. And the two utilities appear to have adequately healthy balance sheets to keep the dividends flowing.

And to maintain investment in the financial sector, you can still rely on U.S. Bancorp, with a dividend yield of 7.5 percent; Wells Fargo & Co., with 6.3 percent; and BB&T Corp., with 7.6 percent.

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