c 2 
17 
even in the case of the most prosperous con 
cerns, dividends on Ordinary and Deferred 
capital are so wholly dependent upon the good 
or bad business done by the company that 
dividends derived from capital issues of this sort 
are never quite free from a taint of speculation. 
So that investors who desire to receive a safe 
and regular income must eschew Ordinary and 
Deferred stocks entirely, and also every type 
of prior charge which does not show a large 
surplus of revenue beyond its own individual 
dividend requirements. There is a large 
number of stocks and shares known on the 
London Stock Exchange which are so well 
secured from an income point of view as to 
practically preclude the possibility of any 
irregularity or reduction in dividend pay 
ments. It is to securities of this class that 
every investor, who aims at stability of income, 
should confine himself. 
It is, of course, possible to average income 
risks by splitting up the capital to be invested 
amongst a number of securities paying large 
dividends and by setting aside a part of this 
large income annually to cover possible future 
contingencies. This plan is followed by many 
careful investors, who thus manage to make a 
large and fairly stable income.