Get Access to Some of the Highest and Safest Investment Returns in the UK - Normally Reserved for Large Investors and the Government.
Read on for everything you need to know about how Preference Shares work, the benefits and tax treatment - and how YOU can get to hear about new offers of Preference Shares that aren't published anywhere else!
This website was set up to help you learn about and take advantage of Preference Shares - just like the large investors and governments! If you already know everything there is to know, but just want to be notified when new Preference Shares are issued - join our free mailing list here!
So Why Should We Care About Preference Shares?
- Because the percentage return or dividend is fixed each year unlike standard shares where dividends are announced at the end of the period
- Preference shareholders are often entitled to dividend payments even when ordinary shareholders are not! In fact, preference shareholders
- Dividend Payments Can "Carry-Over"!: So, if a company cannot pay a £2,000 dividend one year, that amount will "Carry Over" and be applied the next year - so that the preference shareholder receives £4,000! (assuming the company is then able to pay dividends the following year)
- Preference Shareholders Paid First If a Company is Liquidated: If a company is forced to liquidate, preference shareholders are paid before ordinary shareholders - and this is precisely why Warren Buffet insisted on receiving "preference shares” when he invested 5 Billion US Dollars into Goldman Sachs in 2008! Even the £20 Billion into RBS by the U.K. government was made in preference shares - to ensure they can recoup their investment if the bank is ultimately forced into liquidation!
- Preference Shares are "Legally" Shares: This means that preference shareholders enjoy the same tax treatment as ordinary shares helping to maximize your investment value!
Preference Shares Are Used by Governments and Investing Tycoons Like Warren Buffet Because They Offer Higher Returns and Less Risk - And Now You Can Too!
Preference shares are actual shares in a private or public limited company - but they are very different than ordinary shares in several respects:
- They Pay a Fixed Rate of Interest (dividend)
- They have Preference Over Ordinary Shareholders for Dividend Payments
- They attract Preference in Right To Return of Funds in Case of Liquidation
And the icing on the cake - preference shareholders also get the same tax treatments as ordinary shareholders! Dividends on preference shares are paid out of taxed company profits and thus treated as 'franked investment income'.
For the average taxpayer, all this fancy accounting lingo simply means that there is no further tax to pay on preference share dividends . To compare them with the return from other investments, you would have to 'gross up' the net return from a preference share.
As an example, Aviva has a preference share that is paying 6.93% net (at a purchase price of 122p). The gross equivalent is 8.7% - and it is this figure that you would have to use to compare with the other investments. 8.7% is a very high rate in the current market - when a typical search for 'high rate savings accounts' shows
A higher-rate taxpayer will pay the lower rate of 22.5% tax on their income from preference shares - due to the 10% tax credit which is already treated as paid (because the dividends are paid out of corporate profits after tax).
So Why Haven't We Heard of Preference Shares Before?
It all sounds great - dividends paid at a fixed rate, plus
You can see why governments and major players like Warren Buffet refuse to hand over billions without receiving preference shares in return!
Sadly, it seems that "the average investor" can't be trusted with Preference Shares!
There are no laws or stipulations banning private investors from purchasing Preference Shares - and yet few are even aware that they exist! In fact, Preference Shares are available in an almost "hidden layer" of the investment world for one reason and one reason only...
...because Brokers Don't Make Enough Money On Them!
That's right - the brokers simply can't make enough money for themselves to make it "worthwhile" enough for them to offer them to their investors! Because most investors tend to hold on to Preference Shares longer (meaning fewer transactions for brokers to make a commission on!) and they require more "legwork" to set-up and manage, so most brokers simply pretend they don't exist!
But this extra effort is more than compensated by the higher average returns and safer investments offered by Preference Shares!
Now You Can Take Advantage of Preference Shares and Invest Your Money Wisely During These Dark Times By Joining our newsletter.
Our email newsletter is absolutely FREE to join, and was created exclusively to help you to take advantage of Preference Shares just like the billionaires and governments - because hey, we need to make a living too!
Gain Exclusive "Members Only" Access to Preference Shares Deals Before Everyone Else!!
Why should the rich and the governments be the only ones earning a decent return in this abysmal investing environment? Join our email newsletter and finally have access to a segment of the investment world with returns so high and risk so low - even Warren Buffet and the U.K. government love them!
But Hurry - Membership is Only Guaranteed FREE to the First 100 to Sign-Up!
Let's be clear: Membership is 100% FREE right now and you will NOT be asked for a credit card or billing information when signing up!
Right now, you can join and keep your credit cards safely tucked away. If you decide that you aren't comfortable with investing in Preference Shares, or simply want to discontinue membership for any reason - it still won’t cost you a penny!
Still Nervous? Then Here's Three Reasons Why You Should Join our Email Newsletter Today...
1. The Economy Isn't Yet Getting Any Better: Let's face it: House prices are low, employers are still shedding jobs, and the banks aren't cutting loose with the money. If you don't want to stuff all your cash under the mattress and actually want to see a healthy, above average return on your investments - then you should choose Preference Shares!
2. It's FREE: No fees showing up on your credit card statement - in fact, we don't even ask for any credit card information! So
3. Higher Returns, Less Risk:Preference Shares are a win-win for both you (with higher-than-average fixed dividends and preference over ordinary shareholders) and the companies offering them, because they get access to more capital when banks aren't lending! Higher returns, more control, and less risk - what more can you ask for in this economy!
What Are You Waiting For - the Great Economic Recovery in 2010 or 2011? Earn Higher Returns with Less Risk Today!
