Dividend Yield Opportunities On AIM (2019)

AIM INVESTMENTS

Dividend Yield Opportunities On AIM (2019)

Investors hoping to draw an income from their holdings might be surprised by the number of AIM companies rewarding shareholders with a dividend. As of April 2019, for example, a total of 298 companies had paid shareholders a dividend within their most recent financial year – just over a third of the market.

How come the majority of AIM companies do not pay a dividend?

High grow targets mean that AIM companies tend to prefer to reinvest any profit made from operations, rather than redistribute to shareholders. This is perhaps expected considering AIM is a growth market. 

What are the reasons behind certain AIM companies paying a dividend?

Although a growth market, AIM has matured a great deal in its 23-year history, and so have a lot of the companies listed. As a result, a dividend can act as an acknowledgement of more stable operating conditions, as well as an acknowledgement that growth forecasts are now lower than some of the newcomers to the market. Either way, it is a means to keeping shareholders invested in the company.

The presence of a dividend can also be an important tactic for attracting further investment by flagging that the company is generating cash and feeling confident about the future.

How is the dividend yield calculated?

Shown as a percentage, the dividend yield is a financial ratio that shows how much a company pays out in dividends every year in relation to its share price. It is calculated by dividing the value of dividends paid in a certain year per share of stock held by the value of one share of stock.

Dividend Yield = annual dividend per share / current price for one share of stock

For example, if a stock’s current share price is 100 pence and it pays dividends at a 5 pence annual rate, its dividend yield is currently 5%.

Should you be cautious of a high yield percentage?

An important factor to bear in mind is that the yield is shown in relation to its current share price. Therefore, should the share price drop but the dividend remain the same as what was distributed, the dividend yield will rise. As a result, you are likely to notice a large number of especially high yields for AIM companies. These numbers, however, need to be considered against their recent share price performance.

The dividend yield also needs to be considered against the fundamentals of the company in terms of its ability to pay a dividend in the future. For instance, investors may like to consider whether or not there have been any recent acquisitions or investments made to facilitate further growth but would have impacted the cash available.

Which AIM companies have recently paid shareholders a dividend?

As of January 2019, a total of 285 AIM-listed companies had paid shareholders a dividend within their most recent financial year – just under a third of the market. In order of market cap (largest to smallest), these were:

  • Burford Capital Ltd
  • Fevertree Drinks PLC
  • Abcam PLC
  • RWS Holdings PLC
  • Secure Income REIT PLC
  • Clinigen Group PLC
  • Gresham House Strategic PLC
  • Globalworth Real Estate Investments Ltd
  • Dart Group PLC
  • GB Group PLC
  • James Halstead PLC
  • Gamma Communications PLC
  • Plus500 Ltd
  • Keywords Studios PLC
  • Young & Co’s Brewery PLC
  • First Derivatives PLC
  • Craneware PLC
  • Globaldata PLC
  • EMIS Group PLC
  • Advanced Medical Solutions Group PLC
  • Highland Gold Mining Ltd
  • Diversified Oil & Gas PLC
  • Smart Metering Systems PLC
  • Origin Enterprises PLC
  • Nichols PLC
  • Total Produce PLC
  • Applegreen PLC
  • Watkin Jones PLC
  • Young & Co’s Brewery PLC
  • Johnson Service Group PLC
  • Polar Capital Holdings PLC
  • YouGov PLC
  • Greencoat Renewables PLC
  • Scapa Group PLC
  • Central Asia Metals PLC
  • Midwich Group PLC
  • Learning Technologies Group PLC
  • SafeCharge International Group Ltd
  • Summit Properties Limited
  • Next Fifteen Communications Group PLC
  • IG Design Group PLC
  • CVS Group PLC
  • Hotel Chocolat Group PLC
  • Restore PLC
  • Alliance Pharma PLC
  • Redde PLC
  • Iomart Group PLC
  • M P Evans Group PLC
  • CareTech Holdings PLC
  • Thorpe (F W) PLC
  • Eddie Stobart Logistics PLC
  • AB Dynamics PLC
  • M&C Saatchi PLC
  • Ideagen PLC
  • Impax Asset Management Group PLC
  • Strix Group PLC
  • Renew Holdings PLC
  • Camellia PLC
  • Eco Animal Health Group PLC
  • dotDigital Group PLC
  • Focusrite PLC
  • Mortgage Advice Bureau (Holdings) PLC
  • Gooch & Housego PLC
  • Alpha FX Group PLC
  • Abbey PLC
  • Numis Corp PLC
  • Alpha Financial Markets Consulting PLC
  • Staffline Group PLC
  • Aberdeen Frontier Markets Investment Company Limited
  • Warehouse REIT
  • Andrews Sykes Group PLC
  • Manx Telecom PLC
  • Joules Group PLC
  • London Security PLC
  • Brooks Macdonald Group PLC
  • Impellam Group PLC
  • Morses Club PLC
  • Taptica International Ltd
  • Mincon Group PLC
  • The SimplyBiz Group PLC
  • Mattioli Woods PLC
  • Telit Communications PLC
  • Telford Homes PLC
  • Premier Asset Management Group PLC
  • Arbuthnot Banking Group PLC
  • Knights Group Holdings PLC
  • Somero Enterprises Inc
  • Quixant PLC
  • Bioventix PLC
  • Crystal Amber Fund Limited
  • Mulberry Group PLC
  • Tracsis PLC
  • Judges Scientific PLC
  • Pan African Resources PLC
  • Gateley (Holdings) PLC
  • Curtis Banks Group PLC
  • Majestic Wine PLC
  • Latham (James) PLC
  • Churchill China PLC
  • IDOX PLC
  • Lok’n Store Group PLC
  • COHORT PLC
  • CPL Resources PLC
  • AFH Financial Group PLC
  • Nucleus Financial Group PLC
  • Keystone Law Group PLC
  • Tribal Group PLC
  • Park Group PLC
  • City Pub Group PLC
  • Cello Health PLC
  • Vertu Motors PLC
  • Marshall Motor Holdings PLC
  • XLMedia PLC
  • Palace Capital PLC
  • Tatton Asset Management PLC
  • Personal Group Holdings PLC
  • Tristel PLC
  • Premier Technical Services Group PLC
  • Gresham House PLC
  • Weiss Korea Opportunity Ord
  • Portmeirion Group PLC
  • Quartix Holdings PLC
  • H&T Group PLC
  • Inland Homes PLC
  • Inspired Energy PLC
  • Redcentric PLC
  • Oxford Metrics PLC
  • Litigation Capital Management Limited
  • Mind Gym Limited
  • Character Group PLC
  • Springfield Properties
  • D4t4 Solutions PLC
  • Sopheon PLC
  • Urban Exposure PLC
  • Shoe Zone PLC
  • B.P. Marsh & Partners Plc
  • Epwin Group PLC
  • Real Estate Investors PLC
  • easyHotel PLC
  • Transglobe Energy Corp
  • Miton Group PLC
  • Hargreaves Services PLC
  • Stride Gaming PLC
  • K3 Business Technology Group PLC
  • Eckoh PLC
  • Augean PLC
  • Cropper (James) PLC
  • Sylvania Platinum Ltd
  • Duke Royalty Ltd
  • Finsbury Food Group PLC
  • OPG Power Ventures PLC
  • Harwood Wealth Group PLC
  • Science Group PLC
  • Anpario PLC
  • Michelmersh Brick Holdings PLC
  • Anglo Asian Mining PLC
  • Nexus Infrastructure PLC
  • PCF Group PLC
  • AdEPT Telecom PLC
  • Warpaint London PLC
  • Safestyle UK PLC
  • StatPro Group PLC
  • NWF Group PLC
  • Maintel Holdings PLC
  • TMT Investments PLC
  • Steppe Cement
  • Animalcare Group PL
  • Dewhurst PLC
  • Begbies Traynor Group PLC
  • Fulcrum Utility Services Ltd
  • Elecosoft PLC
  • Netcall PLC
  • Livermore Investments Group LTD
  • Flowtech Fluidpower PLC
  • Filta Group Holdings PLC
  • Nasstar PLC
  • Panther Securities PLC
  • Yew Grove REIT PLC
  • Cake Box Holdings PLC
  • Avingtrans PLC
  • Elegant Hotels Group PLC
  • Cambria Automobiles PLC
  • Trans-Siberian Gold PLC
  • Amino Technologies PLC
  • Wynnstay Group PLC
  • APQ Global Limited
  • K3 Capital Group PLC
  • Plexus Holdings PLC
  • Xpediator PLC
  • Ramsdens Holdings PLC
  • Franchise Brands PLC
  • Spectra Systems Corp
  • Sanderson Group PLC
  • Circle Property PLC
  • Oakley Capital Investments Limited
  • First Property Group PLC
  • Concurrent Technologies PLC
  • Zytronic PLC
  • SciSys PLC
  • Mission Marketing Group (The) PLC
  • Immunodiagnostic Systems Holdings PLC
  • Jarvis Securities PLC
  • Gordon Dadds Group PLC
  • Cerillion PLC
  • NAHL Group PLC
  • Caledonia Mining Corp PLC
  • Arena Events Group PLC
  • finnCap Group PLC
  • Shore Capital Group Ltd
  • Sureserve Group PLC
  • Murgitroyd Group PLC
  • Colefax Group PLC
  • ULS Technology PLC
  • Gattaca PLC
  • Accrol Group PLC
  • Lighthouse Group PLC
  • Walker Greenbank PLC
  • Volga Gas PLC
  • Gama Aviation PLC
  • Amiad Water Systems Ltd
  • Cenkos Securities PLC
  • 1pm PLC
  • Share PLC
  • The Property Franchise Group PLC
  • Synectics PLC
  • Van Elle Holdings PLC
  • Belvoir Lettings PLC
  • Billington Holdings PLC
  • Empresaria Group PLC
  • Venture Life Group PLC
  • FIH Group PLC
  • Solid State PLC
  • MS International PLC
  • Vianet Group PLC
  • Braime (T F & J H) (Holdings) PLC
  • Driver Group PLC
  • Swallowfield PLC
  • PROACTIS Holdings PLC
  • GYG PLC
  • Ebiquity PLC
  • STM Group PLC
  • AIREA PLC
  • Best of the Best PLC
  • Rotala PLC
  • Christie Group PLC
  • Heavitree Brewery PLC
  • System1 Group PLC
  • QUIZ PLC
  • Frenkel Topping Group PLC
  • Hydrogen Group PLC
  • MTI Wireless Edge Ltd
  • Helios Underwriting PLC
  • Norish PLC
  • Orchard Funding Group PLC
  • Wynnstay Property
  • Arcontech Group PLC
  • Good Energy Group PLC
  • GLI Finance Ltd
  • Croma Security Solutions Group PLC
  • 600 Group PLC
  • Yu Group PLC
  • M Winkworth PLC
  • Olee PLC
  • HML Holdings PLC
  • Catalyst Media Group
  • Titon Holdings PLC
  • Hunters Property PLC
  • LPA Group PLC
  • Heavitree Brewery PLC
  • Northern Bear PLC
  • Ingenta PLC
  • DekelOil Public Ltd
  • Robinson PLC
  • WYG PLC
  • IndigoVision Group PLC
  • Fireangel Safety Technology Group PLC
  • Bilby PLC
  • Prime People PLC
  • Octagonal PLC
  • Heath (Samuel) & Sons PLC
  • RTC Group PLC
  • Tandem Group PLC
  • Northamber PLC
  • Arden Partners PLC
  • Dillistone Group PLC
  • Univision Engineering Ltd
  • Autins Group PLC
  • Coral Products PLC
  • Safeland PLC
  • SimiGon Ltd
  • Veltyco Group PLC
  • United Carpets Group PLC
  • Fletcher King PLC
  • Stilo International PLC
  • SpaceandPeople PLC
  • Aeorema Communications PLC
  • Holders Technology PLC
  • PHSC PLC

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