- Eight Aim companies fail just one test on our dividend screen.
- FTSE All Share screen is mostly flagging value.
Aim stocks are, it’s mostly fair to say, thought of mostly in terms of growth opportunities. Value investors, too, have also found rich-pickings over the years on Aim, as companies with a sum of parts valuation that’s higher than their market capitalisation can be found. Dividend yield on Aim is seen as a sign of value and not necessarily as indicating a stock should be held long-term for income.
Nonetheless, there are several companies ranking well on our Aim dividend yield screen this month. Although they might not all be considered income stocks per se, a decent payout is an important part of getting a good total return.
Warehouse Reit (WHR) yields 4.1 per cent and as a reit has to pay 90 per cent of its earnings in dividends, the income component is always going to be significant. It only has an interest cover of four times, according to our data, which flags leverage and borrowing as an area to investigate further.
Smart Metering Systems (SMS) also fails the five times interest cover test, but otherwise scores full marks.
For Keystone Law Group (KEYS) and Tatton Asset Management (TAM), the issue is earnings per share not giving one-and-a-half times cover to dividends per share.Download PDF