The Alternative Investment Market (or AIM for short) index of shares is designed primarily to help small and growing companies to raise capital. While the total number of listings has fallen recently, investors still have almost 670 shares here to choose from today.
This number can be daunting for those looking to start their investing journey. With this in mind, I’ve selected three top AIM shares I think could look good in a starter portfolio.
Buying AIM shares might deliver market-beating returns. Be aware, however, that it might also be riskier than purchasing large- or mid-cap stocks on the FTSE 100 or FTSE 250 indexes. So investors should carry out thorough research when considering which stocks to buy.
The growth and dividend stock
Springfield Properties (LSE:SPR) is tipped to enjoy an 80% rise in annual earnings this financial year (to May 2025). This reflects recent improvements in the housing market and the builder’s successful efforts to raise margins.
Cost-cutting, land sales, and the end of low-margin legacy contracts meant gross margins rose 300 basis points higher during the first half, to 17.7%.
It’s important to remember that some of these are one-off factors. Furthermore, the homes market recovery could falter if economic conditions worsen, and/or interest rates stay around current levels.
But I still believe Springfield Properties remains an attractive stock to consider, and especially looking at its long-term prospects. Demand for its product could rise strongly as the UK population grows. Government efforts to build 1.5m new homes in the five years to 2029 should also boost the company.
I also like the look of the Scottish housebuilder as a dividend stock. Steps to mend the balance sheet mean cash rewards here are tipped to grow strongly over the next two years.
As a consequence, a dividend yield of 1.6% for this year leaps to 2.7% and then 4.3% for financial 2026 and 2027, respectively.
The value share
Base metals miner Central Asia Metals (LSE:CAML) provides super value based on predicted earnings and anticipated dividends.
For 2025, the company trades on a price-to-earnings (P/E) ratio of 8.1 times. Meanwhile, its corresponding dividend yield is 9.4%.
To put that into perspective, the average yield on FTSE 100 shares is way back at 3.5%.
Central Asia Metals produces copper from the Kounrad mine in Kazakhstan, along with lead and zinc at the Sasa complex in North Macedonia. As a consequence, its share price has soared recently as industrial metal prices (and especially copper values) have exploded.
Base metals are tipped by some analysts to keep rising, too. It’s important, though, to remember that commodity prices are notoriously volatile. Fresh fears over changing US trade policy, for instance, could pull metal values sharply lower again and whack miners’ revenues columns.
Yet from a long-term perspective, I think Central Asia Metals remains an attractive stock to consider. It’s my belief that copper, lead, and zinc demand will rise strongly on a range of phenomena, such as increasing investment in artificial intelligence (AI), the growing green economy, and rising infrastructure and housing spending across the globe.
This post was originally published on Motley Fool
