Investing in AIM Stocks Can Pay Dividends
There is an interesting report just out from Zeus Capital on the dividend attractions of some recent AIM IPOs. Zeus can comment with some authority having been responsible for some of the largest listings on AIM over the past 12 months including DX Group PLC (Mkt cap £176m), boohoo.com plc (£500m) and MySale Group (£281m).
Zeus comments how 2014 started with a great deal of optimism but has ended up being a difficult and volatile twelve months. Zeus has screened the UK market for companies over £50.0m market capitalisation and greater than 1.5x earnings cover and discovered almost 500 possessing the desired attributes, with the top 50 averaging a yield of 5.8%. They point out that this is materially higher than can be achieved from triple ‘A’ rated corporate (c. 3.2%) or ten year government debt (c. 2.2%). Of greater relevance for AIM investors Zeus has brought to market six companies offering yields in excess…