So you have decided that you want to invest in preference shares, but what’s the next step? There are so many confusing and conflicting reports regarding preference shares that you may not know where to start. Consequently it is important that you try and understand exactly where you can get preference shares, but most importantly of all, which ones should you be investing in? With the wide variety that is on offer, sorting out where to invest can be a daunting task. So here we try and show you five places where investing your money in preference shares could lead to great returns.
1. Lloyds Bank
Lloyds offer some preference shares in their banking sector, and they are on offer at the moment. Over the history of the shares they have been known to pay good dividends, but currently they are prevented from paying out any dividends on preference shares. Therefore these may be ones to invest in now with the goal of achieving good dividend payments in the future.
2. Halifax
Halifax offers you a variety of ways to invest in preference shares, mainly through their investment accounts or pension funds. This means that you can manage your accounts, and also choose which preference shares to invest in. If you do the right research you could find that buying into Halifax preference shares now will see you gain huge rewards in the future.
3. John Lewis
Everyone knows John Lewis as a strong retail company that looks after its members. Their preference shares are no different, and if you decide to invest in the company you should get a dividend and be sure of good communication. John Lewis is a great company to look at investing in to begin with.
4. BP (British Petroleum)
BP have faced some awkward press over the last 18 months since the Gulf of Mexico oil leak, but this does not mean that their preference shares are still not performing well. Investing in BP will ensure that you should gain a good dividend, with performance on shares being improved. And everyone needs petrol, right?
5. Bellway
Although house building has been at a low for the past year, can you really say that your local area hasn’t got at least one building site? With £20m worth of shares on the market, picking up preference shares in Bellway can put you on the right track with your investments. With the government set to encourage new builds over the next few years, the dividend payments could be big.
There are such a wide variety of preference shares out there, but you need to choose which ones are right for you. Always get the advice of a stockbroker or investment branch. This will ensure you get the best deal for your money.