Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-01-13
YIELDS IN STOCKS
ARE AT HIGH MARK
Returns on Many Issues Still
Large Despite Market
Advance.
BY CHARLES F. sPEARE.
special pispatch to rhe Star.

Special Dispatch to The Star.
NEW YORK, January 13.-The vari-
Gus stock charts show an average adj
vance in the market Of about is points
since the middle of December. At the
low average last month the yields on
common and preferred stocks were not
only the highest since 1921, but in
some groups they exceeded the income
return that had been given during a
much longer period.
1t is of interest, therefore, to note
the investment yields that are still
available on the basis of current prices
and which are yet of size to attract
those who are concerned more with re-
turn on capital than in its apprecia-
ton.
Analysis of Yields.
Out of about 1000 different issues
dealt in on the New York Stock Elk
change last week 700 show a return
between and per cent. There are
100 on which the yield ranges from
to 10 per cent. In the group where
the spread is from 10 to Is per cent
the number of stocks available at these
Yields is lis. From that level the Inst
tapers down sharply and enters a nelo
where high dividend returns suggest
dividend instability.
Stocks that yield from 10 to ~ per
cent number rs. Then there Is the
small group of five issues on which the
range is from 20 per cent to nearly
SO per cent.
Roughly. about As per cent OF the
official list today offers investment OPP
portunities ranging from the traditional
'6-per-cent-w ith-safety' issues to those
that are at the extreme end OF the scale
of Yields. where returns have fire.
ulently been in excess OF the current
market price of the stocks to whlcr
they were attached.
Owing to the large number OF dlyl-
dends that have been passed IN tnt
last year, there is longer list OF stocks
that Weld nothing to the holder thar
for some years. Numerically, this
amounts to nearly so per cent Of the
entire number quoted from day to day
on the New York Stock Exchange.
SO rapid has been the rise in varl-
Gus active stocks since the end OF 1881
that yields have dropped as mucn as
to 3 per cent. It is doubtful If the
investor who is most strongly attracted
to securities in periods when they snow
their highest returns will have AGAR
the opportunities that presented them
selves less than month ago.
1t has not infrequently occurred
within the last few weeks that both
at prices which seemed to indicate mos'
plainly that their dividends were to be
reduced or passed, but which suose-
ouently have been found to be on a
fairly permanent dividend basis. In
other words, high yields during the pc
Rod of panic among security holders
has been no true index OF the earning
power of the stock or the real dividend
policies of the company's management
There are still numerous stocks IN
the groups yielding between and 10
per cent, as we'll as in that where the
return is from 10 to IL per cent, whose
dividends from all present indications
apnear to be secure In this list are a
number of preferred shares that de-
clined abruptly when bonds were going
down and have not yet had a recovery
commensurate with that which has
taken place in the market for fixed
interest obligations.
Second Grade Bonds.
Those who prefer to make their in
vestments in second-grade bonds In
stead of common and preferred STOCKS
have also had opportunities for yield
such as have not been given in years.
Here again the feeling exists that 1t VIII
be a long time before income advan-
tages equal to those around holiday
time are available. The change that
has taken place is frequently as much
as / per cent. In the field of foreign
government bonds 1t has often been
even greater than in common stocks.
(Copyright, 1917