Tan DUNLOP DIVIDEND.
Some disappointment was occasioned to the market in Dunlop shares by the announcement last week that there' would be no interim distribution on the Ordinary stock. As a consequence the price of the units declined to about 88s. whereas at one time this year the price was over 58s., and indeed the present quotation is the lowest since the early part of last year. It may be recalled that at the last Annual Meeting the Chairman sounded a note of caution reminding the shareholders that prices were low in relation to manufacturing costs and that Oversea business was hampered by exchange difficulties and high tariffs. These conditions have evidently continued, for in the recent statement the Directors say that while the volume of business has been maintained the rise in raw materials and the lag in adjustments of selling prices, coupled with unstable conditions abroad have to some extent adversely affected profits. The dividend for the whole of last year was 8 per cent., and no interim dividend has been paid since 1930. Should last year's dividend be repeated the yield on the stock at the current price would be a little over 41 per cent.
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