AIM dividends surprise in H1 after strong 2021 IPO year

Slowdown expected as margins squeezed

Dividends paid to investors from AIM-listed firms surprised in the first half of 2022, increasing by 7.4% to £574m, according to the Link Group’s annual AIM Dividend Monitor, with the building materials sector the largest contributor over the period, elevated by a construction reboot post-pandemic.

Construction materials firm Breedon paid its first ever dividend in the third quarter of last year, followed by a large final payout to investors in May 2022 of 1.6p per share. Payouts at financials, including asset managers, advisory firms and stockbrokers, recovered, returning to pre-pandemic levels, and increased by a fifth compared to one year prior, making up 22% of total AIM dividends. The Bank of England implemented curbs on dividends paid by top lenders during the worst months of Covid-19. UK dividends jump to £37bn in Q2 as the pound stumbles  The food, drink and tobacc...