Key Highlights

  • Livermore Investments Group Limited (LSE:LIV) is listed on AIM with a Dividend Yield of 8.19%.
  • The 2026 dividend was declared at 5.1 US cents per share and paid on 3 July 2026.
  • That compares with 4.23 cents paid in 2025 and 2024.
  • Net profit for 2025 was $5.3m against $6.6m in 2024.
  • NAV per share was steady at $0.84 at the end of 2025.
  • The company has a very strong Liquidity position and minimal debt.

Overview of Livermore Investments

Livermore Investments Group Limited (LSE:LIV) is a British Virgin Islands-based Investment company listed on AIM. It invests mainly in Credit markets, particularly US collateralised Loan obligations, alongside Private Equity and other holdings. It is a small company with a lean team.

The 8.19% yield reflects an annual dividend paid in US dollars and a share price that trades at a discount to NAV.

Latest Results

Livermore reported final results for the year ended 31 December 2025 on 27 May 2026. Net profit was $5.3m, compared with $6.6m in 2024. Shareholders' funds were $139.6m at the year end, compared with $139.1m, and NAV per share was unchanged at $0.84.

Dividend Record

Livermore pays an annual dividend. In 2025, it paid an Interim Dividend of $7.023m, equivalent to 4.23 cents per share, on 4 July 2025. The 2024 payment was also 4.23 cents. For 2026, the company declared a dividend of 5.1 cents per share on 22 May 2026, paid on 3 July 2026, an increase of around 20%. In sterling terms, the 2026 payment was roughly 3.8p per share.

Historically, Livermore's dividends have varied, including a large payment in 2021 and no payment in 2022. Investors should view the dividend as variable rather than progressive.

Dividend Cover and Cash Flow

Data providers estimate dividend cover of around 1.5 times based on earnings. Livermore's income comes from distributions on CLO equity and debt, which can be strong when loan defaults are low. Its large cash and liquid holdings mean the dividend is not a strain on the balance sheet. The company has a current ratio well above typical levels and very little debt.

Portfolio and Market Backdrop

CLO equity returns depend on US Leveraged Loan performance, Interest Rate spreads and default rates. In 2025 and 2026, the leveraged loan market remained relatively stable, supporting distributions. A rise in defaults or narrowing of spreads would reduce income.

Share Buybacks

Livermore's share count has declined over time through buybacks, which increases NAV per share for remaining shareholders when shares are repurchased at a discount.

Management Approach

Livermore's small team manages a concentrated portfolio with an emphasis on liquidity and Capital preservation. This conservative stance allowed the company to keep NAV stable through volatile credit markets and to increase its dividend for 2026.

Risks

Key risks include US credit cycle deterioration, currency movements between the dollar and sterling, and the company's small size and low trading liquidity. The dividend's variable history is also a consideration.

Market Sentiment

Sentiment on UK small-cap forums has been positive on the dividend increase. The share price rose sharply around the results, with the yield briefly reaching high levels before settling. The company's valuation remains below NAV.

Dividend Sustainability Scorecard

  • Dividend: raised to 5.1 cents for 2026 from 4.23 cents.
  • Cover: estimated around 1.5 times.
  • Balance sheet: strong liquidity, minimal debt.
  • NAV: stable at $0.84 per share.
  • Key risk: US credit cycle and variable payout history.

Valuation

Because Livermore trades at a discount to NAV and holds substantial liquid assets, investors are paying less than the value of the underlying portfolio. That Margin of safety supports the investment case.

How Livermore Fits an Income Portfolio

Livermore offers exposure to US credit markets that few UK-listed companies provide, with a single annual payment in dollars. Investors who already hold sterling-based bond trusts may use it to diversify currency and asset exposure. However, because the dividend has fluctuated historically, it is better suited to investors who can accept variable annual income. The company's strong Balance Sheet and stable NAV provide reassurance, and management's willingness to raise the payout in 2026 signals confidence in portfolio cash generation over the coming year.

What Investors Should Watch

Investors should monitor CLO market performance, interim updates, NAV changes and the dividend declaration expected around May 2027.

Is the 8.19% Yield Sustainable?

Livermore's dividend looks sustainable at current levels, supported by Earnings cover, strong liquidity and a stable NAV. However, the payout has varied historically and depends on credit markets. LSE:LIV suits investors seeking dollar-based income from a cash-rich investment company.