SAFE PREFERENCE SHARES One of the most satisfactory features of

the stock markets the steadiness of gilt-edged and other fixed-interest securities. Despite the rising tendency of bank advances credit remains abundant, and although I feel that interest rates must stiffen Eater on, the process has every appearance of being very gradual. In these conditions investors seeking income in the fixed-interest field have little to gain by waiting, as prices are likely to be well maintained. Here are two groups of prior charges offering yields of over 4 per cent. and a high degree of safety :—

Margin of Revenue above

Current Yield Dividend

Price. 0 Requirement. £ s. d.

London & North-Eastern Rly. 4 p.c. £100 Guaranteed Pre-

ference .. .. .. ..

Southern Rly. 5 p.c. ktoo Preference.. .. .. ..

London, Midland & Scottish

4 p.c. k 1 oo Preference ..

971 I41 83 No. of Times Dividend Current Covered. Price.

s. d.

Anglo-Iranian Oil 8 p.c. First £1 Preference .. • • • • • 5 Burmah Oil 8 p.c. Li Preference .. 9 Shell Transport 7 p. c. Second Li Preference .. • • • • • 7

The home railway preferences offer. good cover, even on the basis of last year's net revenue figures. . Present indications are that the 1937 revenues of the railways will be increased, and that next year's totals will be still better. Conservative investors may feel a little diffident at seeking safety in oil shares, but there is nothing contradictory in' this idea. All three companies have immensely strong finances, a well-managed and widely spread organisation, and their preference dividend requirements are only a small fraction of their earnings even in lean years. At present, the outlook for oil-producing and distributing companies is distinctly bright. 4 2 3

4 _7 4 16 3,568,216 6 1,536,781 6 2,795,389 Yield 0.

• ,0 £ s. d.

36 6 4 7 0 39:6. 4 1 o

34 o 4 v 1 9