piEW BASIS OF, YIELDS A glance at the prices of

industrial ordinary shares now shows very- clearly that the recent 'setback has put many promising issues on an attractive yield basis. Here is a group of half a dozen of the kind of home industrials I have in mind

Current Last Yield

Price. Dividend.

s. d.

o

L s. d.

Austin Motors (5a.)

.. 43 6

so

5 17 6

Powell Duffryn Cz

.. 26 3

7 5 6 9 Pressed Steel 5s. .. — 44 3 22i* 6 3 9t

Shipley Collieries L i

• • 41 9 12

5 15 9

Richard Thomas 6s. 3d. • • 14 0 '5

7 .1 0

Tunnel Cement (tos.) . .

.. 47 6

25 5 5 3 * Tax free. f Less tax.

Three months ago the average yield on this group was just under 5 per cent. ; it is now only a trifle less than 6 per cent. This adjustment is much more than a reflection of the antici- pated effects of the new tax on profits and cannot be explained by any reasonable fears that the peak of the companies' earnings has already been passed. It merely indicates that ideas of yields have been revised and that investors have recently been less willing to chase capital appreciation and ignore income return. The outlook for all these companies and for a large number.of British industrial concerns seems to me to be good enough to make the ordinary shares worth picking up at current prices both for their generous yields and for a moderate rise in value.

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