RISE IN VARIABLE DIVIDEND STOCKS.
On the other hand, it is considered that variable divi- dend stocks and speculative and semi-speculative descrip-1 tions may easily see a continuance of the activity which has marked them for some time past. How steadily the advance has been proceeding in these variable dividend: stocks compared with the gilt-edged or fixed interest yielding securities is clearly demonstrated in the statistics compiled by the Bankers' Magazine. These statistics show that the index number of 365 securities selected has shown a remarkable change in tendency during recent years. Starting in December, 1921, with the fixed level of 100 both for fixed and variable interest stocks, the index number in the case of the fixed interest stocks steadily advanced until, in April, 1923, it stood at 116.41 By that time, however, the variable dividend list, which for some months was slow to move, had already passed it,' the number being 124.4. From April, 1925, however, the retrograde movement in gilt-edged descriptions set in, until, at the end of December, 1925, it had fallen to 108.8. The variable dividend group, on the other hand, steadily forged ahead and, at the end of December last year, it had risen to 132.5, the advance during the last year being the more remarkable because Home Railway Ordinary, stocks, which are also included in the variable dividend list, had fallen by as much as 24 per cent.
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