Last Updated on September 1, 2020 4:47 pm

Miner Base Resources shot up 32 per cent to 15p this week after it declared a maiden dividend of 35 Australian cents per share.

It is somewhat of a rare breed in the junior market, with companies paying dividends plummeting over the course of 2020 after managers opted to save cash to get through the coronavirus crisis.

In the three months to last June, 64 AIM firms issued a payout, while in the same period last year 145 of them did the same.

The dearth of distributions has been a common theme across the world throughout the pandemic, with global dividends sliding 22 per cent to $382billion in the three months to June, according to research by Janus Henderson published earlier this week.

North America was the only region showing growth thanks to resilience among Canadian companies, while Europe and the UK were hit the hardest.

The whole year may see a decline between 27 per cent or 23 per cent for a total of around $1trillion.

‘A temporary halt in dividends does not change the fundamental value of a company, though it can affect short-term sentiment,’ said Jane Shoemake, investment director at the asset manager.

‘It remains important for income investors to be diversified both by geography and sector.’

Read the full article at: