The most common and most likely answer to this crossword clue is the 6 letter word SERVES
I've seen this crossword clue in The Daily Telegraph
S
E
R
V
E
S
Buddy explains!

The straight part
We know that "Dishes out" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dishes out = serves.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does SERVES mean?
SERVES noun- An act of putting the ball or shuttlecock in play in various games.
- A portion of food or drink, a serving.
- (personal) To provide a service (or, by extension, a product, especially food or drink).
- To treat (someone) in a given manner.
- To be suitor to; to be the lover of.
- To be effective.
- To deliver a document.
- To lead off with the first delivery over the net in tennis, volleyball, ping pong, badminton etc.
- To copulate with (of male animals); to cover.
- To be in military service.
- To work, to operate (a weapon).
- To work through (a given period of time in prison, a sentence).
- To wind spun yarn etc. tightly around (a rope or cable, etc.) so as to protect it from chafing or from the weather.
- To perform (a public obligation).
- To provide crack cocaine (to), usually by selling, dealing, or distributing.