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.