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AIM dividends to fall by at least a third this year - healthyfrog

AIM dividends to fall by at least a third this year

Dividends paid by companies listed on AIM will fall by at least a third this year in another blow to retail investors

Dividends paid by companies listed on AIM will fall by at least a third this year in another blow to retail investors. 

Shareholders will receive £873m in payouts, according to estimates from Link Group. 

Cutting back: Shareholders will receive £873m in payouts, according to estimates from Link Group

This is down 34 per cent from a record 2019, when junior market investors were given £1.33billion. 

But the £873m forecast is Link’s best-case scenario. Its most pessimistic forecast is down 48 per cent to £698m. 

Much of the drop has been driven by companies slashing or halting dividends because of the Covid crisis.

Large firms – including about half of the FTSE 100 – have also made cuts, hitting ordinary investors who rely on dividends as a source of passive income.