6. What is the difference between CTC and CTC.a?
These ticker symbols represent each of Canadian Tire's two share classes. CTC is the symbol for the Common Shares. CTC.a is the symbol for the Class A Non-Voting Shares.
Per Corporate Governance - Canadian Tire Investor Relations, as of March 14, 2013, 94.1% of the voting shares (CTC) are controlled by a small group that probably doesn't trade often, if at all. The breakdown is:
Martha G. Billes owns 40.9%
Owen G. Billes owns 20.5%
C.T.C. Dealer Holdings Limited owns 20.5%
The Company’s Deferred Profit Sharing Plan owns 12.2%
There are 3,423,366 Common Shares outstanding and there are 77,740,727 Class A Non-Voting Shares outstanding (as of March 14, 2013).
They are creating a subsidiary, selling properties to their subsidiary and selling a stake in their subsidiary to the public. The advantage of this is it makes the value of the properties explicit (priced daily through the stock market), often at a higher value than when blended with their rest of their business. A number of retailers have been doing this lately to unlock some value.
I bought in at about $10 last summer - it slid to 9 for a while, and is now better. Kicked the dividend up on the last payment. Still not a great yield, but I guess I will sit with it for a while.
One holding out of about 30 companies I own outside of my RRSP with about 11k in each as my version of a dividend player Canadian equity fund with no management fees paid to anyone else.
I don't reinvest the dividends as drips, but rather let the cash accue and then top it up to about 11k and buy another company to further diversify. I find this better than packaged div plays, because I can go underweight on most Canadian financials that I think are a bit too hot to be worth the risk at present.
The RRSP has different beasts- real estate REITs and other real estate plays
sorry crew - too quick look at quicken portfolio view over lunch - holdings between 10k and 9k and now 12k for CTC-A. Yes share price mentioned in my post is totally out to lunch.
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