A current-perpendicular-to-the-plane (CPP) structure magnetoresistive (MR) element includes a pinned magnetic layer made of a granular film. The granular film contains electrically-conductive magnetic crystal grains and an dielectric material. The dielectric material serves to thin the path of the sensing electric current in the pinned magnetic layer. Moreover, the sensing electric current concentrates at the magnetic crystal grains. A larger variation can be obtained in the voltage of the sensing electric current. The output of the CPP structure MR element can be enhanced.