AIM Dividend Index Report 2023

AIM dividends surged to a new record in 2022.

In our new AIM Dividend Index Report, we look at how 2022 and its final months shaped up and consider the outlook for 2023.

• AIM dividends surged to a new record in 2022, up 13.7% to £1.34bn
• Underlying dividends (which exclude lower one-off specials) rose 26.8% to a record £1.21bn
• Every sector saw higher dividends in 2022, but oil, industrials, mining and financials contributed most to growth
• AIM’s dividend recovery has been faster than companies on the main market
• Growth slowed in Q1 2023 – up 13.8% on an underlying basis – but still delivered a first-quarter record
• Link Group expects full-year underlying growth of 2.9% to record £1.24bn; headline payouts to rise 3.8% to record £1.39bn

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.”