Get 8% Preferred Income From Preferred Shares

As you noticed from the chart in last month's newsletter, interest rates keep falling. And if you're retired, this is reducing your fixed income. Knowledgeable investors are turning to preferred shares for higher rates of income.

Preferred shares are issued by corporations as a way to raise money, just like selling stock. Preferred shares however, have a preferred status because their dividend is always paid before the common stockholders can be paid a dividend. Additionally, preferred shares pay a much higher rate of income than common shares.

For example, the average common stock on the New York Stock Exchange pays a dividend of 2%. However, many preferred shares pay a fixed dividend of 7% and 8%. These are fixed rates which you enjoy for as long as you hold the preferred shares. Because investors hold these shares for income, they are traded less, are less volatile than common shares, and are designed for a more conservative income oriented investor.

You can sell your shares at any time, just like any share of stock. The sales price may be more or less than you paid. Alternatively, many investors hold their preferred shares indefinitely until "called" (redeemed) by the company. Almost all preferred shares have a provision allowing the company to call in their preferred shares at a set time at a set future date.

We have a available a list of preferred shares paying over 8% (current yield) from well known companies such as:

-Time Warner Capital

-TCI Communications Financing (largest cable company in the U.S. )

-RJR Nabisco Holdings

-Public Storage (largest provider of short term storage facilities in the U.S. )

For a list of issues that provide a current yield of 8% or more, while they last, please call (510) 935-5488 or check off on the attached coupon. If you are not ready to act now, please call for this list in the future as these rates will not be the same later.

8% Preferred Shares

Below are preferred shares available form well known companies. These are generally suitable for conservative investors desiring income but may not be suitable for every investor. Prices and yields are as of December 19, 1997. In most cases, dividends are paid quarterly (in some cases, dividends are monthly)

Texaco is one of the world's largest oil companies

Placer Dome is the world's largest gold producer

TCI is the largest cable company in the US

National Westminster is one of the largest banks in England

Availability and pricing changes daily. Please call for current offerings.