UK Preference Shares
What are preference shares?
Preference shares are a class of share which pay a fixed rate of
dividend.They have similar characteristics to equities in that investors are able to receive dividends.
However, as the dividends from preference shares are fixed, an investor
won't benefit from any increases in a companies profits but they will be protected if a company's profits falls. Generally preference shares are issued by larger blue chip corporations and are seen as a more secure investment type.
| Five Key Benefits of trading preference shares with Halifax Share Dealing |
| 1. Convertible Preference Shares allow the investor to convert their preference shares into ordinary shares at a predetermined date and price. |
| 2. Dividends on Cumulative Preference Shares have to be paid before any distribution of profits to ordinary shareholders. If a company is unable to pay out the dividend to preference share holders, this entitlement is then carried forward until the company is in a position to pay out. |
| 3. Shares are held electronically in our nominee so there's no worrying about missing paperwork |
| 4. Access to Advanced Dealing (TradePlan), a new way to control risk and maximise opportunities. |
| 5. Once your Share Dealing Account is opened, track the performance of your Convertible or Cumulative Preference shares and plan your next trade by using our Market Research Centre. |
You must remember that there is a certain amount of risk when dealing in shares and so whilst you have the potential to make substantial profits, there is also a chance you could lose your original investment.
Which accounts can I hold preference shares in?
Share Dealing Account - the easy and efficient way to buy preference shares
Self-Select Stocks & Shares ISA - our award winning tax-efficient investment product
SIPP - take control of your retirement
What can I do next?
Apply now for an account
Transfer to us - transfer your investments held with another broker to us
Research preference shares here. Simply type your chosen company into the search box on the left hand side and find your chosen preference share.
