The Successful Investor Hotline – Friday, June 6, 2008

Article Excerpt

BOMBARDIER INC., Toronto symbols BBD.A $8.71 and BBD.B $8.72, rose 7% this week after reporting first quarter fiscal 2009 earnings and revenues that exceeded expectations. In the three months ended April 30, 2008, earnings per share jumped to $0.12 from $0.04 a year earlier (all amounts except share price in U.S. dollars). Revenue rose 20.0%, to $4.8 billion from $4.0 billion, due to strong demand for business aircraft, regional jets and railcars. Thanks to its improving outlook, Bombardier plans to resume quarterly dividend payments of $0.025 (Canadian) a share. That implies an annual yield of 1.1%. The class B subordinate voting shares will also receive an additional priority payment of $0.0015625 (Canadian) a share per year, payable quarterly. That gives the class B shares an annual yield of 1.2%. Bombardier is a buy for aggressive investors. The higher yielding ‘B’ shares are the better choice. ROYAL BANK OF CANADA $49.68, Toronto symbol RY, has agreed to pay an undisclosed sum for Houston-based Richardson…