25 JULY 1931, Page 24


In addition to the variable dividend shares mentioned there are certain classes of fully paid shares which are limited as to dividend. The distributions on the former are so far above the rates to which the maximum dividend shares are entitled that' the possibility of a reduction in the payments on the latter is distinctly remote and they may, therefore, be regarded as fixed interest bearing securities for all practical purposes. This consideration is reflected in the yields, which are lower than those obtainable on the variable dividend shares. Barclays, Lloyds and the Westminster have shares of this kind. The £4 fully paid " A " shares of Barclays are entitled to a maximum dividend of 10 per cent. and yield £4 17s. 8d. per cent. at the price of 8*. Lloyds Bank have £1 " B " shares ranking for a maximum of 5 per cent. and return £4 7s. at 235. The £1 shares of the Westminster Bank stand around 54s. and yield £4 12s. 7d. on their maximum dividend of 124- per cent.