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    Shares for income

    Shares for income
    Many companies pay dividends on their shares and these can provide a reasonable income. Typically, a company will pay two dividends a year – an interim dividend and a final dividend. Their size depends on how well the company is doing and its financial commitments.

    You could consider preference shares, a special class of share which offer a slightly lower risk (see INVESTMENT – Preference shares). Their main advantage is that if a company cannot pay a dividend to all shareholders, preference shareholders will get paid first.

    TIP: Remember dividends are not guaranteed and neither is the value of your shares.

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