Top 10 AIM Stocks with Dividend

Summary

• Investors who are seeking income generating dividend stocks are seen to be gravitating toward dividend paying AIM participants.
• AIM stocks are smaller and high growth-oriented companies.
• The number of AIM stocks making dividend pay-outs have increased over the years.

The Alternative Investment Market (AIM) is the London Stock Exchange’s submarket for smaller but growth-oriented companies. According to data from research firm Link Asset Services, the percentage of AIM stocks offering dividends grew from 26 per cent in 2012 to 35 per cent in 2019, and there has been a consistent increase in the numbers.

Thus, investors who are seeking income generating dividend equities are seen to be gravitating toward dividend paying AIM stocks as they have been increasingly making dividend payouts to their shareholders.  

While the onset of the pandemic had halted dividend pay-outs due to the surrounding uncertainty, companies have resumed making such pay-outs as the reopening of the economy recently has helped it bounce back.

                                             Source: Copyright © 2021 Kalkine Media

Here, we take a closer look at the top 10 dividend paying AIM-listed stocks:

1. APQ GLOBAL LIMITED (LON:APQ)

APQ GLOBAL is an international emerging markets income company focused on Asia, Latin America, Emerging Europe, Middle East and African regions. The company’s unaudited book value per ordinary share by the end of May stood at US$ 39.11, compared to US$ 39.07, at the close of 30 April.

The AIM listed company’s five-year average dividend yield stands at 12.9 per cent.

2. PREMIER MITON GROUP PLC (LON:PMI)

FTSE AIM All Share index constituent, Premier Miton Group, is a UK based asset management company. The company announced its unaudited Q3 20201 results, reporting improvement in its assets under management to £13.6 billion, compared to £12.6 billion in Q3 2020.

The company’s five-year average dividend yield stands at 4.9 per cent, while its dividend coverage ratio in FY 2020 stood at 0.59x.

Also Read: 10 AIM stocks that may break out in future

3. XLMEDIA PLC (LON:XLM)

XLMEDIA is an FTSE AIM All-Share index constituent and is a global digital publishing company based in the UK.

The company announced the reshuffling of its Chief Financial officer role, with the current CFO Iain Balchin set to step down on 22 July, while Rowan Ellis slated to take over as the interim CFO.

The company’s five-year average dividend yield stands at 7.4 per cent, while its dividend coverage ratio in FY 2020 stood at 0.59x.

4. EPWIN GROUP PLC (LON:EPWN)

Another FTSE AIM All-Share listed firm Epwin Group is the largest manufacturer of PVC windows, doors and facia systems in the UK. The group had announced in its latest trading update that revenues from the first 4 months of 2021 were 56 per cent higher from the previous year same period, as demand increased due to rising consumer confidence. The period included the first lockdown in 2020.

The company’s five-year average dividend yield stands at 5.7 per cent, while its dividend coverage ratio in FY 2019 stood at 4.28x.

5. Central Asia Metals PLC (LON:CAML)

Central Asia Metals is a  metals and mining company and is listed on the FTSE AIM UK 50 Index.

Central Asia announced its 1H 2021 operations update, reporting the completion of the River Remediation Project at Sasa, which is the zinc and lead focused mining site located in North Macedonia.

The Sasa site’s concentrate production of zinc was up to 11,292 tonnes, while its lead concentrate production stood at 13,807 tonnes.

The company’s five-year average dividend yield stands at 6.0 per cent, while its dividend coverage ratio in FY 2019 stood at 4.52x.

6. James Halstead PLC (LON:JHD)

James Halstead is a flooring products manufacturer and distributor based in the UK. It is also a part of the FTSE AIM UK 50 Index.

The company’s revenue for the half year ended 31 December 2020 stood at £130.45 million, compared to £130.39 million the year before. Also, its operating profit rose by 3.9 per cent to £26.2 million from £25.3 million in the previous year.

The company’s five-year average dividend yield stands at 2.8 per cent, while its dividend coverage ratio in FY 2020 stood at 1.16x.

7. The Alumasc Group plc (LON:ALU)

Alumasc Group is a building products company listed on the FTSE AIM All-Share index. It announced in a recent trading update that the group had continued its momentum in the last four months and was focused on the safety of employees, customers and others amid the pandemic.

The company’s five-year average dividend yield stands at 5.2 per cent, while its dividend coverage ratio in FY 2020 stood at 2.70x.

8. Polar Capital Holdings PLC (LON:POLR)

Another FTSE AIM UK 50 index constituent, Polar Capital Holdings, is a specialist active asset management company.

Its assets under management by the end of the quarter ending 30 June rose by about 9 per cent to £22.8 billion, from £20.9 billion in the previous quarter ended on 31 March 2021.

The company’s five-year average dividend yield stands at 6.2 per cent, while its dividend coverage ratio in FY 2020 stood at 1.32x.

9. SHOE ZONE PLC (LON:SHOE) 

Another FTSE AIM All-Share index listed company, Shoe Zone, is a footwear company. In its results for H1 2021, the company reported revenue at £40.4 million compared to £68.9 million in H1 2020, while its net cash balance rose to £4.1 million in H1 2021, from £3.6 million in the year before. 

The company’s five-year average dividend yield stands at 4.5 per cent. 

10. NWF Group PLC (LON:NWF)

FTSE AIM All-Share constituent NWF Group is a specialist food, fuel and feed distributor. The group announced in its latest trading update that its profit before tax for FY 2021 is projected to be ahead of current market expectations, while its net debt is estimated to be lower than previous guidance due to stronger trading.

The company’s five-year average dividend yield stands at 3.6 per cent, while its dividend coverage ratio in FY 2020 stood at 2.64x.

Also Read: Top 10 FTSE Dividend stocks