Investment Notes
FOR those seeking an investment giving a yield of nearly 4 per cent. on the "spot„anek only a few shillings less after allowing for redemption, the-Siamese 4 per cent. Conversion Loan at 101 offers quite fair security, the yield at that price being just over £3 19s. or £3 17s., allowing for redemption by annual drawings at par commencing next year. For those desiring a permanent investment without any question of date of matuilly, the London, Midland and Scottish Railway 4 per cent. Debenture Stock at its present price of 107 gives a yield of about 34 per cent. The Government has no power to redeem the stock and as" against the amount required for interest on the Company's Debenture Stocks, namely, of £4,440,000, the amount available last year was over £13,000,000. For those seeking a higher immediate yield P. & 0. Steamship 41 per cent. Debenture Stock gives a return of about £4 4s. per cent., but the stock can be redeemed at any time after 1943, and if redemption were to take place at the earliest possible date the net yield would be reduced to £3 7s. 6d. per cent. For those inclined to take more specula- tive, but not very speculative, risks mention may be made of the Buenos Ayies Great Southern Railway 4 per cent. Deben- ture Stock which at the present price gives a yield of over £5 5s. per cent. The railway is one of the principal ones in Argentina. The interest on the 4 and 5i per cent. Debenture Stocks calls for £966,000, while the amount available last year was £1,496,000.
SOME INDUSTRIAL ISSUES.
In making any selection from an industrial group, special attention of course must be given to the margin of security represented by past profits. The Cumulative Preferred Ordinary stock of Lever Bros. carries a Preferential dividend of 20 per cent, and at the present price the yield to the investor is about 5 per cent. This dividend requires about £757,000 and the amount available for the year ending December last was over £3,500,000. A Preference share giving a much lower yield but with a large margin of security is the 51 per cent. Preference of British Oil and Cake Mills, which at the present price gives a yield of just over 3; per cent. The Com- pany was formed some 37 years ago to amalgamate several
cake-manufacturing and oil-refining firms. To pay the dividend on the 51 per cent. Preference shares only about £32,000 is required, whereas for the past financial year the net revenue available to meet the dividend was £566,000.
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