HIGH - YIELDING 'REFERENCES Holders of fixed-interest securities need not lose any
sleep over the rise in the Treasury Bill rate from I2S. to 158. per cent. When such a small movement' fran one section of the money basement to another can cause a minor flutter in Lombard Street it is as plain a sign as one could wish that money is still absurdly cheap. In recent notes I have indicated the kind of preference shares which are suitable for investors looking for 41 to 5 per cent. This week I offer more attractive fare, the average yield being roughly 6 per cent. :
No. of Times Dividend Current Yield%.
Covered. Price. £ s. d.
Debenhams 7 per cent. Third io r- =.,
Cumulative Prefs. ..., .. ' .. 24 11/9 5 19 Home Bros. 7 per cent. £i Cum.
Prefs. • • - - " . . II 24/9 5 13 o D. and W. Murray 5 per cent. Cum. 10/- Prefs. .. .. 24 8/- 6 5 0 Richard Thomas 64 per cent. tax-free Cum. £I Pref. .. .. 34 25/9 6 14 6 L.M.S. 4 per cent. 1923 £m° Pref. stock.. .. .. .. xi 694 ". 5 17 3 Kelsall and Kemp 7 per cent. Cum.
£z Pref. .. 25/- 5 12 0
These shares are not for investors whose pcsition does not justify their incurring moderate capital risks. I must emphasis once again that the high yield obtainable is itself a rough measure of the risk involved. The earnings prospects of the companies whose shares I have selected seem to me to be good enough to make the shares attractive in relation to the return offered at today's prices.
* •
0
?1,
Previous page
