OVER 5 PER CENT. IN AMERICA Investors in search of
a 5 per cent. yield who are also im- pressed by the United States as a safe depository for their money might do worse than consider the attractions of the
6 per cent cumulative preferred stock of Prudential Investors, now quoted- at sot dollars. - At this- price the -yield is £5 r9s. per cent., or just over 5 per cent. after deduction of the 15 per cent. American tax, a generous return in relation to the security offered. Prudential Investors is an American invest- ment trust whose assets consisted at December 31st last of
investments, almost all in common stocks " spread over all
the- major industries -of the United States. The trust has no debenture debt,. and at March 31st, 1937, investments shoiired a net unrealised appreciation over their book cost of 2,802,915 dollars, and net assets, which amounted to 13,946,112 dollars, were equivalent to over 300 dollars per preferred share, or three times the current market price.
Net income his naturally improved as America's business recovery has got under way and last year rose from the equivalent of just under 7 dollars to nearly II dollars per preferred share, thus covering the 6 dollar dividend nearly twice over. The preferred dividend has been regularly paid even in the slump period; quarterly payments were made on the 15th of January, April, July and October. In view of the steadily improving trend of American business, which must be reflected in a further rise in the trust's revenue from dividends, I recommend these preferred shares for income purposes.
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