PBR vs PBR.A: Key Differences Between Petrobras Common and Preferred Shares
- Mag Shum
- May 2
- 2 min read
PBR and PBR.A represent two classes of Petrobras (Petróleo Brasileiro S.A.) stock, but they have key differences investors should know. PBR refers to common shares (ON) with voting rights, allowing shareholders to influence corporate decisions, while PBR.A designates preferred shares (PN) that typically offer no voting rights but historically had dividend priority—though Petrobras has often paid equal dividends for both. Both trade on the NYSE and Brazil’s B3 exchange, but PBR.A may trade at a slight discount due to its lack of voting power. Understanding these distinctions helps investors choose the right shares based on their goals—whether seeking influence (PBR) or dividend-focused returns (PBR.A).
PBR (Common Shares)
Type: Ordinary Shares (ON - Ordinárias)
Voting Rights: Yes – These shares carry voting rights, allowing shareholders to participate in corporate decisions (e.g., board elections, major company policies).
Dividends: Typically receive the same dividends as PBR.A.
Trading: Listed on the NYSE (New York Stock Exchange) as PBR.
Ownership: Often held by institutional investors and those seeking influence in company decisions.
PBR.A (Preferred Shares)
Type: Preferred Shares (PN - Preferenciais)
Voting Rights: No – These shares do not grant voting rights.
Dividends: Historically, they had priority in dividend payments, but Petrobras has often paid equal dividends for both classes.
Trading: Listed on the NYSE as PBR.A.
Ownership: Preferred by investors who prioritize dividend income over voting rights.
Key Similarities:
Both trade on the NYSE and B3 (Brazilian stock exchange).
Both are subject to the same underlying company performance.
Petrobras has often paid equal dividends for both classes in recent years.
Which One Should You Choose?
If you want voting rights and influence, go for PBR.
If you only care about dividends and liquidity, PBR.A is fine (and sometimes trades at a slight discount).
