Aim (formerly the Alternative Investment Market) is London’s market for small and medium-sized growth companies. It has a bit of a bad reputation among investors and it’s easy to understand why. Aim has greater regulatory flexibility compared to the main market, which is supposed to make it easier for companies to list and attract investor capital.
Unfortunately, this light-touch regulatory regime has been abused by bad actors over the years. As a result, Aim has developed a reputation for being a financial Wild West.
But while it’s true that there have been some notable disasters in recent years, there have also been some great success stories. The manufacturer of concrete laying laser-guided equipment, Somero Enterprises, Inc. (LSE: SOM), is a great example. Investors who were savvy enough to put £100 in this company ten years ago have seen the value of their holdings hit £3,500 today.
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FTSE 100 companies are expected to return a total of £78.5 billion in 2023, compared to £76.1 billion in 2022. Aim will never be able to rival the blue-chip index for income (the aggregate market capitalisation of the index is only around £80bn), but that doesn’t mean investors should ignore what the index has to offer.
With that in mind, here are the highest yields in the Aim All-Share index (excluding stocks with a market capitalisation of below £20m at the time of writing):
| Company | Dividend per share for 2023* | Dividend per share for 2024* | Dividend yield (%) | Dividend growth (%)* |
|---|---|---|---|---|
| RBG Holdings (LSE: RBGP) | 4.5p | 4.9p | 20.2 | 800 |
| C4X Discovery (LSE: C4XD) | 3p | 6p | 15.2 | - |
| I3 Energy (LSE: I3E) | 1.55p | 2.58p | 11.3 | 17.8 |
| Lendinvest (LSE: LINV) | 4.5p | 4.65p | 9.78 | 2.27 |
| Wentworth Resources (LSE: WEN) | 3p | 3p | 9.61 | 254 |
| Polar Capital (LSE: POLR) | 46p | 46p | 9.55 | 0 |
| Central Asia Metals (LSE: CAML) | 20.9c | 21.6c | 8.83 | -13.6 |
| Anglo Asian Mining (LSE: AAZ) | 8c | 8c | 8.72 | 0 |
| Real Estate Investors (LSE: RLE) | 2.5p | 2.5p | 8.47 | 25 |
| Duke Royalty (LSE: DUKE) | 2.8p | 2.8p | 8.24 | 16.7 |
Figures based on Refinitiv analyst estimates
The list contains a broad mix of companies from different sectors, growth prospects and valuations.
Investor sentiment towards investment and financial services companies has deteriorated amid market volatility. As a result, many companies in the sector have seen their share prices slump and dividend yields. This is not just limited to Aim, it’s happening across the market, including blue-chip FTSE 100 companies.
This price action seems to reflect the view that these asset managers will struggle in volatile markets, and may continue to lose assets to passive fund providers. For those reasons, I’m a bit sceptical about their ability to hit dividend targets.
Real Estate Investors owns a portfolio of commercial properties and is structured as a real estate investment trust (REIT). Under REIT structure rules, the company has to return most of its property rental income to investors, which is the main reason why its yield is high.
Management is trying to close this gap by selling assets and paying down debt, and it has also hinted at special dividends to return additional capital. On that basis, I think Real Estate Investors’ dividend has strong foundations.
See also:
How to find the best stocks with dividends
Five dividend stocks to beat inflation
The ten highest dividend yields in the FTSE 100
The ten highest dividend yields in the FTSE 250
The ten investment trusts with the highest dividend yields
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