Aim payouts could fall by almost half during 2020
Total payouts from Aim companies could almost halve this year, according to forecasts.
Although Link Group believes dividends from firms on the junior market could drop by 34 per cent on a bestcase basis, slightly better than the forecast for the main market, the worse - case scenar - io would see them fall by as much as 48 per cent.
Link’s figures show that after reaching a record in 2019, Aim dividends flatlined in the first quarter of this year and fell by a third in the second.
Although two thirds of Aim companies don’ t pa yd ivid ends, a growing number have started making payouts.
Susan Ring, chief executive of corporate markets at Link, said although Aim’s payouts will “certainly bounce back in 2021”, they are unlikely to top 2019 until 2022 or 2023 at the earliest.
However, she added: “This Aim recovery will be faster than on the main market, where it will take time to make up for the loss of £7.8 billon from Shell alone.”