AIM Dividend Index Report 2023
Insights - Publications

Ian Stokes, Managing Director, Corporate Markets EMEA said:

“Record dividends from AIM are a cause for celebration and stand in stark contrast to the sharp fall in the index over the last eighteen months. A cooling economy means we expect dividend growth to slow from here. Dividends are a lagging indicator and profits are already under pressure from the effect of higher interest rates, inflation and the constraints on household spending power.

The first dividend cuts are already coming through, especially in sectors exposed to the hard-pressed consumer and among miners. Moreover, the deep freeze in IPOs which delivered the worst year on record for new listings in 2022 means there will be a negligible new-listing effect in 2023.

Nevertheless, the strong start to 2023 means there is momentum into the second quarter which is what prompts our upgrade. Our figures show that it’s wrong to imagine AIM is a bad place to look for income. It’s true that most AIM companies do not pay a dividend, but those that do pay offer a yield that might surprise many.”