AIM dividend payouts to smash £1bn mark, says report

Dividends paid by UK companies listed on AIM have almost tripled between 2012 and 2018.


The report believes AIM dividends will continue their record-breaking streak (Philip Toscano/PA)
The report believes AIM dividends will continue their record-breaking streak (Philip Toscano/PA)

Shareholder payouts from firms listed on London’s junior AIM market are set to soar past the £1 billion mark in 2018 for the first time, new research shows.

Dividends paid by UK companies listed on the Alternative Investment Market (AIM) are expected to reach £1.16 billion this year, almost tripling since 2012, according to the inaugural annual AIM Dividend Monitor from Link Asset Services.

Investors in AIM-listed companies have enjoyed annual growth of 18.6% on average over the last six years – almost four times faster than the 4.9% growth seen on divis from firms listed on the main market.

And the research estimates the rate of growth will hit a new record this year, at 19.6%.

The report also believes AIM divis will continue their record-breaking streak, estimating 2019 will see another all-time high of more than £1.3 billion paid out.

Justin Cooper, chief executive of Link Market Services, said: “We rightly associate AIM with young companies, hungry for capital to grow.

“The value of capital being returned to investors via dividends is still much smaller than the amount being raised for investment, but the speed at which dividends are growing shows that more and more companies are coming of age, and reaching that important milestone where they generate more cash than they absorb.”

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The AIM market was launched in 1995 as a growth market dedicated to small and medium-sized companies.

Some of the biggest payouts over the past few years came from the likes of Highland Gold Mining, Arbuthnot Banking Group and James Halstead.

Marcus Stuttard, head of AIM and UK primary markets at the London Stock Exchange Group, added: “In the 23 years since the launch of AIM, more than 3,800 UK and international companies have joined to raise over £110 billion through initial public offerings (IPOs) and follow-on issuances.

“In that time the market has grown and matured, and we’ve seen the average market cap of AIM companies more than double in the past 10 years.

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“Today there are more companies joining at a later stage of growth, able to generate cash to pay dividends back to investors.”

Press Association

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