The highest-yielding Pibs and preference shares

As well as ordinary shares, companies and other institutions issue preference shares and permanent interest-bearing shares (Pibs), which act more like fixed income securities. Rupert Hargreaves explains everything you need to know, and lists the highest-yielding Pibs and preference shares on the market.

Cheddar Reservoir
Bristol Water’s 8.75% irredeemable cumulative preference shares pay a dividend equivalent to 8.75% of the issue price
(Image credit: © Andrew Parker / Alamy)

Ordinary shares are the most common type of shares investors tend to own, but they’re not the only share class available.

Preference shares are similar to ordinary shares with one key difference: they rank higher in the capital structure. That means that, in the event of bankruptcy, preferred shareholders are entitled to receive any proceeds from the liquidation of the business before ordinary investors.

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Stock issueSymbolPrice (Bid)Yield
Aviva plc 8 3/4% Cum Irrd PrfAV.A122p7.20%
BP plc 8% Cum 1st prfBP.A168p4.70%
BP plc 9% Cum 2nd PrdBP.B176p5.10%
Bristol & West Plc 8.125%BWSA123p6.60%
Bristol Water Plc 8 3/4% Cum Irrd PrfBWRA153p5.70%
Ecclesiastical Insurance Office Plc 8.625% Non Cum Irrd PrfELLA126p6.90%
General Accident Plc 8 7/8% Cum Irrd PrfGACA121p7.20%
Northern Electric Plc 8.061P(NET) Cum Prf Shs 1pNTEA135p6.00%
RSA Insurance Group Limited 7 3/8 % Cum Irrd PrfRSAB106p6.90%
Santander UK Plc 8 5/8% Non-Cum StlgSANB125p6.90%
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IssueSymbolPrice (Bid)Yield
Coventry Building Society 12 1/8%229076180p6.70%
Halifax 8.75%39510118p7.40%
National Westminster 11.5%621025175p6.60%
Nationwide Building Society 6.25%3362796105p6.10%
Nationwide Building Society 7.859%177788133p5.90%
Onesavings Bank PlcB67JQX696.5p4.90%
Prudential 6 7/8% 2023242277103.7p6.70%
Royal Bank Of Scotland Plc Infln Lkd Nts 01/11/22 (Uk Rpi)B4P95L5100.3p7.50%
Skipton Building Society 12.875%819411184p7.10%
Skipton Building Society 8 1/2%444062142p6.10%
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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.