Learning Technologies and Fevertree Drinks among AIM’s dividend sprinters and thoroughbreds

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Today’s AIM dividend monitor from Link once again gave the lie to the oft-repeated claim that AIM-listed companies don’t pay dividends but which ones are growing payouts fastest?


Some would argue that as AIM is a home for Britain’s growth companies, companies listed on the junior market have no business paying dividends.


READ AIM dividends rebound strongly from COVID-19 dip


Be that as it may, roughly one in five do so. As they are supposed to be growth companies, I thought it would be interesting to see which AIM-listed companies have grown their dividends the most over the last five years and see what effect this has had on their dividend yield.


Now, you’d expect a company that has, say, doubled its dividend over a five-year period – as 31 AIM companies have – would be sporting a generous yield but in truth, not many of them are because the other side of the dividend yield calculation (dividend divided by share price) has also grown quickly.


Thus, the theory goes, a fast-rising dividend could be viewed as a sign of a fast-rising share price.


Let’s look at the numbers.


Ticker

Company

5-year growth in dividends (%)

Current full-year dividend (p)

Yield (%)

Forecast yield (%)

LTG

Learning Technologies Group PLC

733

1.3

0.5

0.4

SMS

Smart Metering Technologies PLC

658

25

2.6

2.6

DATA

GlobalData PLC (AIM:DATA)

580

17

1.1

1.2

IPX

IMPAX Asset Management Group PLC

438

8.6

0.7

0.7

FEVR

Fevertree Drinks (AIM:FEVR) PLC

409

15.7

0.7

0.7

YOU

YouGov PLC

400

5

0.3

0.4

TRB

Tribal Group PLC (AIM:TRB)

356

2.3

2.2

1.2

SOM

Somero Enterprises Inc

332

29.8

4.5

3.5

BOTB

Best of the Best PLC

285

5

0.7

0.8

IGR

IG Design Group PLC (LSE:IGR)

250

8.7

1.6

1.7

Not many corking dividend yields among that lot. Somero is the best of the bunch at 4.5%, while Smart Metering and Tribal Group offer a yield that is close to matching UK inflation.


Let’s have a look at those companies that have doubled their dividend payouts over five years that are yielding at least 2%.


Notwithstanding the fact that a couple of stocks – Smart Metering and Somero – feature in both lists, it might be interesting to create two virtual portfolios from those lists and see which one performs better over the next year. My money would be on the ones offering the faster dividend growth and skimpier yields but if I was any good at this prognostication lark, I would not be hacking out a living as a journalist.

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