The present invention relates to a method of preparing a pigment composition comprising the steps of combining a polymer and a pigment to form a mixture and heating the mixture to a temperature of between about 70.degree. C. and 250.degree. C. to form the pigment composition. The method may further comprise the step of dispersing the pigment composition in an aqueous medium to form an aqueous pigment dispersion. The pigment compositions and aqueous pigment compositions can be used in an inkjet ink composition, which is also disclosed.