![]() ![]() In the end, however, I think what matters most is whether you intend to invest in Bombardier for the short term or for the long or short term. Additionally, (once re-instated), Class B shares tend to have a higher dividend. The Class B offer lower prices and higher volumes (meaning lower volatility) which for me already would be a reason to go for the Class B shares. The Class A shares have more voting rights, but with one party owning over 50% of the voting rights this is not worth anything.Ĭlass A shares have sold off less sharply, which is to be expected as these shares are owned by parties that consider voting rights important. This results in a higher volatility, making the Class B shares preferred. As Class A shares are more focused on voting rights, they are traded on low volumes. Although dividends have been suspended, I think the higher dividends on Class B shares are much more appealing to investors than voting rights that are close to meaningless given the >50% voting rights the Bombardier family has. At current prices the Class B shares are $0.27 cheaper, this means that with the same money you could get 18% more Class B shares than Class A shares.Ĭlass B shares used to have a $0.1016 annual dividend, compared to the $0.10 annual dividend for the Class A shares. The Class A shares lost 13.7% of their value over the past years, while the Class B shares lost 25.7%. The YChart shows that the Class A share prices have declined 48.8% over the past 10 years, while the Class B shares declined by 53.6%. What the voting right is worth to an investor can be questioned, certainly considering the fact that over 50% of the voting rights are owned by the Bombardier family. The Class A shares basically are an easy and cheaper way to acquire voting rights. In that case Class A shares are preferred, but this really works out if the investing party own a big number of shares.įigure 1: Division voting rights per class (Source: )Īs can be seen from Figure 1, Class B shares have about 40% of the voting rights. For people or institutions that do want to have some leverage the voting rights of course are indeed important. Class A shares have 10 voting rights, while Class B shares have 1 voting right. One of the main differences between the Class A and Class B shares are the number of voting rights. In this article I will have a look at the differences in voting rights, prices, dividend and volume. Following my article covering the Delta Air Lines (NYSE: DAL) CSeries order, I have received various questions regarding the difference between Bombardier's Class A ( OTCQX:BDRAF) and Class B ( OTCQX:BDRBF) shares. ![]()
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