21 JANUARY 1938, Page 39

PREFERENCE SHARE YIELDS

It is an ill wind that blows nobody good, and even the chilling blast from across the Channel has brought a flood of buying orders into the gilt-edged market. " Consols " have enjoyed most of the French support, but the whole list has improved and we should soon see the Corporation loan turnstile clicking merrily again. Meantime, investors seeking income in the prior charge field can obtain reasonably good yields as well as substantial security of capital. The following group satisfies both these desiderata

Borax Consolidated 6 p.c. Non- Cumulative Preferred £5 .. Doulton & Co. 5 p.c. Cum. Li Prefs.

Houndsditch Warehouse 5 p.c. Cum. Li Prefs.

Gabriel Wade & English 61 p.c. Cum. Li Prefs. Neuchatel Asphalte 5 p.c. Qin.

Prefs. .

The cover in all these cases is satisfactory in relation to the annual dividend requirement, and the normal fluctuations in the companies' earning capacities. Perhaps the best value for money is the Houndsditch Warehouse issue, the preference capital being backed by a large ordinary capital on which a high rate of earnings is well established. The average yield on this group is just over 51 per cent.

[Readers' enquiries, or requests for advice regarding particular shares, will be answered periodically as space permits. Correspon- dents who do not desire their names to appear should append initials or a pseudonym to their questions.] (Financial Notes on page 712.)

No. of Times Dividend Covered 41 5 71 31 Current Price 19!9

24/3

18;6 Yield

0/0 s. d.

5 9 o 5 1 0 5 3 o 5 7 o 5 8 o