Bombardier Shares: Price, Dividends and Performance
Bombardier stock does not always allow shareholders to receive a dividend but can be a more interesting value for a long-term capital gain..
How much can you make with Bombardier stock?
Get up-to-date and precise information on Bombardier stock with its current price, dividend yield, analysis and our opinion.
This page is for information purposes only and does not constitute investment advice. Remember that investing can be risky.
Want to buy shares in Bombardier: Our key take-aways
Stock exchange: TSX
- Stock index: S&P/TSX
- Dividend 2021: $0
- Dividend forecast 2022: $0
- 1 year performance: -17.43%.
Should I buy Bombardier stock?
While Bombardier stock still does not provide investors with the opportunity to receive a dividend, it may be a stock to consider as part of a longer-term strategy.
On one hand, it is possible that Bombardier's profit distribution policy will evolve over time and that a dividend will eventually be paid for future years. On the other hand, the consensus of analysts, as well as the signals returned by the technical, fundamental and financial analysis of this stock, are sending interesting buy signals and price increases.
Bombardier stock can therefore be part of your stock market portfolio as a growth asset.
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How can I buy shares in Bombardier ?
To buy Bombardier on the stock market:
- Find an online broker offering stock investments.
- Open your trading account by filling out a simple form.
- Deposit funds into your account.
- Search for the stock
- Place a buy order to add Bombardier to your stock portfolio.
How much are Bombardier shares?
See price chart below to follow Bombardier stock price in real time.
Why Bombardier shares could go up:
The elements currently available to us regarding the possible future of the Bombardier share show various arguments in favour of an upward trend for this stock in the medium and long-term, including
- A restructured product portfolio: Bombardier's refocusing of its aviation business, which recently divested its rail transportation business, is enabling it to win a large number of projects and increase its profitability.
- Strong financial results: Bombardier's performance in recent years has often exceeded expectations and forecasts, including strong EBIT and cash flow.
- Effective growth strategy: The company pursues a reliable and sustainable growth and revenue enhancement strategy, including significant investments in R&D to stay ahead of its competitors.
- Excellent operational structure: Since the group changed its operational structure in 2015 by setting up four divisions instead of two, the group's organization is more agile and allows for less exposure to the risks of each segment.
- Growth in developing markets: Thanks to its strategic positioning in developing markets and its innovations, Bombardier is enjoying strong growth momentum.
Why Bombardier shares could go down:
Of course, Bombardier stock also has some weaknesses that you should be aware of and that may indicate a downward trend in this stock, including:
- Production delays: some of the aircraft designed and developed by the group have experienced significant delivery delays recently, which has damaged its brand image.
- Strong global competition: Bombardier also faces fierce competition from other major players in the industry who are vying for market share through innovation.
- Rising Costs: Bombardier's production costs have risen significantly in recent years due to the current economic climate and the rising prices of certain key raw materials.
Can I buy Bombardier stock online?
Yes! You can buy Bombardier shares online. For many buyers this is the best way to do it. Here's why:
- The commissions are lower
- You can choose your own investments
- You benefit from analysis and decision support tools
- You can invest in stocks directly or through derivatives like ETFs.
How can I sell my Bombardier shares?
As a Canadian investor, there are several ways to sell Bombardier shares:
- Sell shares for cash: You can only sell shares for cash if you have them in your stock portfolio and anticipate a decline in value or want to recoup your profits.
- Sell short: If short selling is not possible from traditional savings vehicles, it is possible to use a margin account or derivatives to take a position on the decline in the price of this Bombardier stock.
What investment vehicles in Canada can hold Bombardier stock?
Bombardier shares can be placed in several different savings vehicles including"
- RRSPs: these registered retirement savings plans offer funds that are accessible at the time of retirement and offer an income tax deferral.
- TFSAs: tax-free savings accounts is an incredibly popular short-and long-term tax-free investment vehicle.
- Margin accounts: This account offers leverage and allows you to borrow against the value of the securities you hold to make other investments. It allows you to sell short.
- Cash accounts: This account allows you to trade stocks on North American markets only.
Depending on the strategy you wish to implement in your investments on Bombardier stock, you can buy these shares alone and individually but also invest in a basket of stocks.
This is indeed possible by investing in an ETF or ETF of stocks of which this Bombardier stock is part.
Bombardier share price history over 10 years:
Bombardier dividends and payment dates
Currently, Bombardier does not pay dividends to its shareholders.
Bombardier Group used to pay dividends for holding its stock on the stock market but stopped its redistribution policy in 2015.
There are several reasons for this lack of dividend payment:
- First, Bombardier wants to prioritize reinvesting its profits in its growth, and in particular by making strong investments in R&D in order to stay on the cutting edge of technology in the face of competition.
- During the Covid-19 crisis, Bombardier received a wage subsidy from the Canadian government to cope with the difficulties faced by the sector. As a result, it could not offer any compensation to its shareholders.
Currently, there is no indication that Bombardier is considering a return to a dividend policy, but this stock may act as a growth stock with a view to realizing long-term capital gains.
What is the dividend yield for Bombardier over the last 10 years?
The yield on Bombardier shares is obtained by dividing the annual dividend by the annual average price.
A stock's yield provides key information about a company's dividend policy and its evolution over time and performance.
Good to know
Annual gross shareholder return = Total dividend for the year ÷ average share price for the same year
Good to know
The 10-year average return = Sum of annual returns ÷ 10
What analysts are saying about Bombardier stock:
A critical analysis of Bombardier stock:
Fundamental analysis of Bombardier's share price is relatively positive, both in terms of financial data and analyst sentiment and consensus.
- Increasing enterprise value: Based on the various forecasts currently being made by analysts working on Bombardier, the company's value and market capitalization are expected to increase over the next few years.
- Significant debt reduction: previously heavily burdened by debt, the group is significantly reducing its debt levels today and has implemented an effective strategy to do so.
- Lower than industry yield per share: Since Bombardier does not pay dividends to its shareholders, its yield is zero. Note that the industry average yield per share is currently 4.2%.
- A bullish price target: the various analyses and the consensus of the analysts in charge of Bombardier seem to indicate a strong possibility of this stock rising. The average price target is currently set at $1.90.
- Buy recommendations: again based on the opinion and consensus of analysts working on Bombardier, we see a majority of "Accumulate" recommendations, which means that specialists in this sector in the stock market recommend that investors increase the volume of Bombardier shares in their portfolio.
A technical analysis of Bombardier stock:
Based on the medium and long-term stock charts of Bombardier shares, the signal obtained is a neutral to buy signal. The current technical indicators are as follows:
- The RSI, which is currently at 57.367, returns a strong buy signal on this stock.
- The signals obtained through the moving averages are neutral with one part of the averages returning a buy signal and the other part, a sell signal.
- The MACD indicator, which is at -0.018, is sending a moderate sell signal.
- The next technical resistances are at 1.854 and 2.07 while the medium-term technical supports are at 1.484 and 1.287.
Who is Bombardier?
Bombardier Group Inc. is a Canadian company specializing in business aviation.
More specifically, the company designs and develops business aircraft as well as aircraft structural components and related services. The aircraft offered in the group's product portfolio are
- LearJet business jets with the Learjet 40, Learjet 45, Learjet 70, Learjet 75 and Learjet 75 Liberty aircraft.
- Challenger business jets with the Challenger, Challenger 300, Challenger 350, Challenger 3500, Challenger 600, Challenger 650, Challenger 601, 604 and 605 models.
- Global business jets with the Global 5000, Global 5500, Global 6000, Global 6500, Global 7500 and Global 8000 models.
The Bombardier Group currently supports a fleet of 4,900 aircraft in service and operates in 12 countries around the world. It employs 49,180 people.
Geographically, Bombardier's sales are distributed as follows
- 48.3% in the United States
- 10.6% in Europe
- 9.2% in Canada
- 4.1% in Switzerland
- 2.4% in France
- 2.2% in the UK
- 2% in Australia
- 1.8% in China
- 0.9% in Germany
- 0.6% in Mexico
- 0.2% in India
Who are Bombardier’s competitors?
Since the sale of its rail transport activities, Bombardier is one of the leaders in the aeronautics sector worldwide. But it still faces strong competition from some of the major players in this market, including:
- Boeing: The American aircraft and aerospace manufacturer Boeing is of course in direct competition with Bombardier. It is an aircraft manufacturer specializing in civil and private aircraft, which also operates in military aeronautics, helicopters and satellites through its various subsidiaries and divisions.
- Airbus: The French group Airbus Commercial Aircraft is a European aircraft manufacturer that today produces more than half of the world's airliners. It was created in the 1960s as a consortium of European manufacturers.
- Dassault Aviation: The French aircraft manufacturer Dassault Aviation is a multinational company with more than 12,757 employees. It operates a fleet of more than 2,100 Falcon business jets and more than 1,000 fighter aircraft that serve in more than 100 countries around the world.
- Gulfstream Aerospace: This American manufacturer specializes in the design and production of private aircraft and has been part of the General Dynamic group since 2001. It is therefore also one of Bombardier's main competitors.
- Embraer: Finally, Bombardier's most important competitor today is without a doubt the Brazilian aircraft manufacturer Embraer, which specializes in the small civil aircraft segment for business, agricultural and regional aviation and also produces fighter aircraft, remote sensing aircraft and government transport aircraft.
Who are Bombardier’s partners?
In recent years, the Bombardier Group has signed several major strategic partnerships with other companies. Some of its strategic allies include:
- Airbus: Bombardier has signed an agreement with Airbus for the C Series. Airvus has acquired a majority stake in the C Series Aircraft Limited Partnership.
- Aston Martin: Another partnership has been established with Aston Martin, which has been selected by Bombardier to design the cabin trim for the group's Challenger and Global aircraft.
- Alstom: Although Alstom is no longer a real partner of Bombardier, having acquired its rail division, the two companies once collaborated on various large-scale projects such as the renewal of the Paris metro.
- William Martini Racing: In 2016, the two companies had announced a brand new strategic partnership for the 2017 season. This allowed the Bombardier brand to be featured on Lance Stroll's helmet as well as throughout the garage environment.
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