Dividends paid by companies listed on the junior AIM stock market are rebounding sharply from the depths of the Covid crisis, according to fresh figures published today.

Research by Link Group shows underlying dividends distributed by AIM companies shot up 56.6 per cent to £265m compared to the same period last year.

For the year so far, dividends issued by AIM businesses have grown 40.7 per cent compared to the same period in 2020.

Companies reined in issuing capital to shareholders at the height of the Covid crisis to protect cash flow amid intense economic instability.

Ian Stokes, Managing Director, Corporate Markets EMEA at Link Group said: “The pandemic has certainly been stormy, but despite the worst recession in two centuries, AIM companies have come through in good shape.”

“AIM companies are more vulnerable to economic disruption than their multi-national counterparts.”

“They are less diversified and have more limited access to funding so they must move quickly to preserve cash to ensure they can ride out a brewing storm.”

Link Group’s research also showed between April 2020 and March 2021, AIM payouts fell 40.4 per cent, slightly better than the 41.6 per cent decline on the main market.