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

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.

No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards.

We are no longer accepting comments on this article.