AIM at 30: the most generous dividend-paying stocks on AIM

AIM is not known for its dividend payers, although there's always been more of them than investors expect. Some of these companies have paid out significant amounts of cash over the years.

There are 38 companies currently quoted on AIM that have paid more in dividends than their initial placing or introduction price adjusted for share consolidations and splits. If they are introductions, then the earliest available share price is used. In the case of the earlier entrants this is a closing price, but for later ones it is the opening price.

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The starting prices are for the original business that floated on AIM. For example, Impax Asset Management Group (LSE:IPX) reversed into former resources company Kern River and Pan African Resources (LSE:PAF) reversed into Viking Internet.

As AIM celebrates its 30th birthday, thereare some companies that could have been included if the reversal price is taken rather than that of the original shell company. An example is RWS Holdings (LSE:RWS), which reversed into Health Media, which had joined AIM as Internet Direct on 19 April 2000. The adjusted share price was 500p. The company became RWS in November 2003, and the day before the reversal the share price was the equivalent of 28.25p. Dividends paid by RWS total 116.726p/share.

The companies in the table do not include those that switched from other markets, many of which have been quoted for decades. Over the lifetime of AIM, that would add 30 to the total. Some of these companies, such as soft drinks maker Nichols (LSE:NICL) and floor-coverings supplier James Halstead (LSE:JHD), have paid more in dividends than the share price when they made the move.

Dividend paybacks for AIM shares

Source: ShareScope on 29 May 2025.

Not all the companies are still paying dividends, so they paid back more than their initial price many years ago. Six are not paying dividends, while Jarvis Securities (LSE:JIM) is being wound up and is set to leave AIM. Some have had periods of difficult trading, while others are conserving cash to reinvest in operations.

Most have been consistent dividend payers with an upward trend in dividends. Wynnstay Group (LSE:WYN) has grown its dividends every year it has been on AIM.

Many of these companies have low yields because on top of the dividend income the share prices have risen significantly. However, Polar Capital Holdings (LSE:POLR), which has paid dividends equivalent to 230.8% of its placing price over 18 years, has a forecast yield of 10.8%. Estate agency M Winkworth (LSE:WINK) has paid dividends totalling 150.7% of its placing price over less than 16 years, and the forecast yield is 6.5%.  

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There are other companies that have left AIM that also covered their flotation price with dividend payments. Some have been taken over. Domino's Pizza Group (LSE:DOM) is an example of an AIM company that moved to the Main Market and has covered its adjusted flotation price many times over.

The most recent of these departures is touch-screen displays manufacturer Zytronic, which has found trading difficult in recent years and is being wound up. It left AIM and moved to Asset Match, an electronic off-market dealing facility for the shares, on 15 May. It had already more than covered its issue price with dividend payments in the 25 years it was on AIM. Any proceeds left from the winding up will be paid to shareholders.

FD Technologies (LSE:FDP) is the subject of a 2,450p/share bid from TA Fund XV, which values it at £570 million. However, FD Technologies is one of the companies that is no longer paying a dividend and instead ploughing cash back into software development. The sale of the consultancy division led to a return of cash via a tender offer.

Pawnbroker H&T Group (LSE:HAT) is recommending a 650p/share cash bid from FirstCash, and shareholders will also receive the previously announced 11p/share final dividend. This dividend is included in the total in the table. FirstCash operates pawnbrokers in the US and Latin America, and this deal will take it into the UK.

US hospital accounts and billing software provider Craneware (LSE:CRW) has also been the subject of bid approaches.

This bid activity shows the attractions of these businesses, which generate cash to pay dividends and are on lower ratings than in the past. They are particularly attractive to private equity funds.

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The companies joining AIM in the early days tended to come from rule 4.2, which was a matched bargain facility operated by the London Stock Exchange. The closing of rule 4.2 led to the launch of Ofex, now known as the Aquis Stock Exchange. There are four companies on the list that moved from Ofex to AIM – Animalcare Group (LSE:ANCR), Bioventix (LSE:BVXP), dotDigital Group (LSE:DOTD) and Wynnstay Group (LSE:WYN). In 11 years, Bioventix has paid out dividends totalling 640.7% of the price at which it switched from the Aquis Stock Exchange.

There is a wide spread of sectors including mining, technology, industrial and services.

Some of the companies have paid one or more special dividends over the years and that has helped them to build up the total dividends. Market research services provider System1 Group (LSE:SYS1) is an example of this. It would not have exceeded the initial share price without these special dividends.

Judges Scientific (LSE:JDG) has distributed the highest percentage of its initial price, paying out 832.2% of the initial share price. It started out as an activist investor before moving into the consolidation of scientific instrument manufacturers. Although it has been quoted for 22 years, the first dividend was not paid until 2006, so this is the 20th year of dividends.

The dividend total includes a 200p/share special dividend. Even without that, it would still be one of the top dividend payers.

The next highest is Bioventix with 640.7%, which has been achieved in 11 years. Bioventix is one of the companies that have paid back their flotation price in the shortest period of time.

Mortgage Advice Bureau (Holdings) (LSE:MAB1) joined AIM in November 2014 and by November 2022 it had paid more in dividends than the placing price. Fevertree Drinks (LSE:FEVR) joined in the same month, and the placing price was surpassed by dividends in June 2023.

Newer companies

There are companies that are approaching the point where they are going to cover their flotation price with their dividend payments. Law firm Keystone Law Group Ordinary Shares (LSE:KEYS) is paying a special dividend of 15p/share on top of the final dividend of 14p/share. The ex-dividend date is 12 June. This will take total dividends paid since flotation in November 2017 to 146.04p/share. The placing price was 160p/share. Panmure Liberum forecasts a 2025-26 underlying dividend of 19.6p/share. That would take the total above the placing price within nine years of flotation.

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If the latest interim dividend is included, telecoms billing software provider Cerillion (LSE:CER) has paid or announced dividends totalling 68.5p/share compared with a March 2016 placing share price of 76p. Net cash improved to £31.2 million by the end of March 2025 and this cash pile is set to continue to build up, so there could eventually be special dividends if no suitable acquisition is found. Even without special dividends, the total should exceed the placing price when the final dividend is announced, which will be within 10 years of flotation.

Defence equipment and services supplier Cohort (LSE:CHRT) is even closer to reaching the placing price of 123p back in March 2006. The current dividend total is 122.2p/share and the final dividend for the year to April 2025 could be more than 11p/share.

Energy supplier Yu Group (LSE:YU.) joined AIM in March 2016 at 185p/share and dividends total 109.45p/share, including a 41p/share final dividend where the shares went ex-dividend on 29 May. That may appear to be well below the flotation price, but 2025 dividends are forecast at 70.8p/share. Yu Group did not pay a dividend between 2018 and 2023 when it had financial problems, but the business has been turned around and is currently highly cash generative.

Andrew Hore is a freelance contributor and not a direct employee of interactive investor.