MAXIMUM DIVIDEND SHARES.
As between the fully-paid and partly-paid shares receiving the same rate of dividend there is a difference in yield in favour of the latter owing to the uncalled liability on that class of capital. The possibility of any call being made, however, is remote, so that for all prac- tical purposes the contingency may be ignored. Sonic banks have fully paid shares ranking for dividends up to fixed maxima. Instances of this class of share are pro- vided by Barclays, Lloyds and the Westminster Bank. Barclays have E4 fully-paid " A " shares entitled to a maximum of 10 per cent., and these return £4 2s. per cent. at the price of 91. Lloyds £1 " B " shares rank for a maximum of 5 per cent. and yield £3 us. 5d. at 28s. The £1 share § of the Westminster Bank carry a maximum dividend of 1'4-per cent., and at 66s. return £8 15s. 9d. per cent. So long as the payments on the variable divi- dend shares remain so far above those on the maximum dividend shares the latter may be regarded as of a dis- tinctly gilt-edged type, which explains the relative smallness of the yields.
S. F. J. KRAEOSSLACH.
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