BP shares-ordinary and preference..?

convict90210

Hi, just wondered if anyone could give me some info about the main differences between the two types of shares...looking to invest £1000 worth but not sure which type..thanks in advance guys!

tradetime

I believe Preference shares often have a fixed dividend rate or coupon, like a bond, and do not normally have voting rights like ordinary shares. They are also higher up the food chain, slightly if the company goes bust, suspect you'll be ok with BP

purch

The two BP Pref Shares are cumulative, which means that if they miss their dividend payment one year, it will be paid in a subsequent year.

The yield equates to something in the 6-6 1/4 % range

Blah99

purch wrote: »

The two BP Pref Shares are cumulative, which means that if they miss their dividend payment one year, it will be paid in a subsequent year.e

Just to clarify, pref shares don't have to pay a dividend. If they do pay they must pay a cumulative dividend of all missed years (note the plural), but there's no forced time limit on a skipped dividend.