SOME PRESENT YIELDS.
The position, therefore, is exceptionally sound. Never- theless, the first consideration affecting share quotations is the rate of dividend in conjunction with the " cover " provided by earnings, and where these are reduced prices tend towards a lower level. With the exception of Barclays the " Big Five " have lowered their interim dividends for the first half of the current year, an action, which, viewed in the light of sound and cautious finance, is accepted as an indication that the balance payments next January will also be reduced to the same extent, given no radical alteration before the end of the year in the situation as affecting banking profits. It is on that assumption that the present level of quotations is based, and the yields now obtainable will be seen from the following :
Bed-
mated Price.
Amount div. for Highest Approx. paid-up. 1931. 1930. Now. yield.
£ % £ £ % Barclays "B" (11) .. 1 14 2* 211 Lloyds "A" (545) .. 1 131 34 211 54 Midland (£12) .. 2/ 16 911 7* 51
„ (521) .. 2f 16 104 81 4 fl (£1) .. 1 16 41 3 41 Natl. Provincial (£25) 31 16 121 11 54 Do. (£20) 4 16 14f 12 51k Do. (55) 5 16 191 161 411 Westminster (54) .. 1 18 44 34 54 NOTE.—Present onotations ex-dividend, except Lloyds, the yield on which is calculated after allowing for the dividend included in the price.
The present level of quotations shows a rather sub- stantial fall from last year's highest and current yields are moderately larger, although prices in no way discount any further reduction in dividends as estimated.
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