Preference shares

Simon Brown

A debt instrument traded on the JSE and issued by large corporates. They pay a dividend that is linked to the prime interest rate and typically offer a high dividend yield. When the government wants to borrow money, these are called bonds. If it’s a company borrowing money, the shares are called corporate bonds or preference shares. You can find out more about preference shares on this page: Buying shares: Bonds/preference shares

These posts discuss preference shares in more detail:

ETF: Income ETFs III – Bonds and Preference Shares

Podcast: ETFs or unit trusts and preference shares

Related terms in this Glossary: