MORE PREFERENCE YIELDS
Capel Court is still a whispering gallery, and the wise ones are saying that there will be a Government loan within the next two months. I shall not be surprised if they are right. But one does not need to look to imminent Government financ- ing to explain why the gilt-edged section stands outlike a beacon amid the prevailing dullness of markets. On the one hand, every move from Whitehall and Threadneedle Street underlines the official determination to maintain cheap money ; on the other, the clouded political and economic horizon diminishes the attractiveness of equity shares as a rival outlet for investors' funds. Here is another list of good preference shares from which investors seeking reasonable 'security and something over 4 per cent. return may make their choice : No. of times Yield
dividend Current
covered. Price. £ s. d.
4 33s. 6d. 4 15 6 5 £6 4 3 4
13 235. 6d.
4
5 0
3
255.
6 0 0 41 24s. 6d. 4 18 0
The relatively high yield offered on the Thames Grit and Aggregates preferences indicates, of course, that these shares are regarded as more speculative than the others, for the corn- Lever Bros. 8% Cumulative " A "
£1 Pref. • • • Liebig's Extract of Meat 5% Cum. £5 Pref.
Metal Industries 5% Cum. Li Pref. Thames Grit and Aggregates 1% Cum. Li Pref. .. Universal Grinding Wheel 5% Curn. Participating Redeemable £t Pref. .. ..
pony's business is bound up with building activity. I think, however, that the risk is remote and is generously allowed for in the price and yield. The return of £4 as. per cent. on the Universal Grinding Wheel preferences is calculated on the basis of the last dividend of 6 per cent. The shares participate up to a maximum of 8 per cent., and are redeemable by purchase or drawings at or under 27s. each.
Previous page
