A YIELD COMPARISON Which are now the cheaper, Wall Street

or London equity shares ? Here are some comparisons based on dividend yields. In the case of the American shares I have included any extra payments, apart from the regular rates, because the full dis- tributions are the best guides to current earnings :— The average yield on this group common shares is 6.7 per cent., of half a dozen representative which does not seem unduly

UNITED STATES STOCKS.

Current Price. Dollars.

Dividend Rate. Dollars.

Yield 0 .0 Allied Chemical 170 6 3.5 American Can. 89 5 5.6 General Electric 4r

3.7 General Motors 40 -44 it.2 Montgomery Ward ..

40

4 . -to.o F. W. Woolworth .. 40 2.4 6.o

Low unless one can envisage a sharp fall in earnings. A comparable British group offeis smaller yields :- BRITISH

ORDINARY SHARES.

Curren; Price. Dividend Rate. Yield.

,o Imperial Chemical ..

36;,-

13 4.4

International Tea (5,2) ..

16 5.3 General Electric

81/6 , 174 4.3 Austin Motors (5,-)

37;6 50 6.5 Dunloi;

34 - ' 9 5.3 Colvilles • . • • 28/- 7 5.0

The average yield of 5.t-per: cent. is-higher-than six months ago, but the adjustment has not gone so far as in leading equity shares in the U.S.A. From the point of view of short-term market movements, I think there. is at present.more scope for capital appreciation in American industrial shares than in their counterparts in this country.

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