CABLE AND WIRELESS DIVIDEND
War conditions, it seems, have not been unfavourable to the Cable and Wireless combine. At least, that is the im- pression one gets from this week's dividend announcements. Cable and Wireless, Ltd., the operating combine, has raised its dividend for 1939 from 3+ to 4 per cent., which implies that its gross receipts last year enjoyed a further rise. Obviously, the Empire flat rate scheme introduced by Sir Edward Wilshaw in the spring of 1938 has continued to bear fruit. Even allowing for the addition of about L200,000 gross to the income of Cable and Wireless (Holding) which the higher dividend from the operating company yields I should not have expected the holding company to increase its ordinary dividend in present circum- stances. The board has acted conservatively in maintaining the 4 per cent. rate. At 62 the ordinary stock yields just under 62 per cent. and seems to me to be reasonably valued at that price. The 54 per cent. cumulative preference to yield 51 per cent. at 95 is a good investment.
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