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I like your way of thinking, it has been a long time since this share was close to £3.
No mention of BUY Back anywhere to my knowledge from the company. Just special dividend and share consolidation. Plus of of the pension payment.
Webba1 - I think you will have to hold Tesco for 3-6 months for sp to recover and grow. My worst case scenario is it starts at £2.20 before ex div and recovers to 1.96, giving 12-13% upside. Best case is sp rises to £3.00 pre div and recovers to £2.48. Just my opinion but as everyone says dyor
I don’t think anybody knows really. In my view sp May drop by 12% but you get 13% upside from divi if you don’t pay tax. Mine are in an isa so no tax to pay. When people realise that through covid supermarkets who have home delivery devices like Tesco are wiping the floor with Lidl and Aldi sp will recover again. Also as we enter recession people will, as they always have, pile into gold and defensive stocks like Tesco. So next year I think sp May rise back to this level which means we keep all 25% upside.
interesting steer- im trying to work out do i hold and take the obvious upside as the price gains or do i hold post payout and see what level it drops by.
have some reservations on actual value- lots reported at 51p per share but thats post pension contribution and a bigger worry is they may share buy back rather than straight divi.
any views?
I think there are two pretty safe bets at the moment. Supermarkets who are almost covid risk free. People still need to eat and when lockdowns occur people but even more....second is healthcare, a booming area right now. The special divi is a bonus. My estimate is half of the loss from sp going ex-div will be retained because Asia only contributes 13% of Tesco’s profits. Div is c25%. This has to be the safest share in the ftse100 with huge upside potential for 2020 AND 2021 results. Beyond 2022 will be interesting to see where Tesco heads
Feb 11th/ paid 26Feb @Alpha
@Alpha86
Next normal dividend (final) goes ex-divident in the 13th May, payable on the 18th June.
What a joke Aldi is, only store where it’s a Covid free for all, there was some Eastern European’s playing footy in one isle with no masks on. Customer experience couldn’t be any worse, no festive music, like shopping in a morgue
When is the next dividend for tesco?
tough one to work out. cant see why this hasnt risen more since the rumour of the div. Assume this will pick up post the trading update early Jan. SP tends to move in a small range so i'm watching as have cash in other more volatile shares for the SP gain that will then come across here sometime early jan to lock in the inevitable rise pre Div close on the 11th Feb
Thanks Accountant, good read. The article pretty much sums up my rationale into buying here last month. Not forgetting that it was Tesco that initiated the return of the business rate relief cash to the Government. Not so sure about TSCO being seen as a T/O opportunity but the online delivery infrastructure must look attractive to the likes of Amazon.
I also agree with the comments in relation to Aldi and Lidl, they have lost some market share due to the size of the stores, lots of shoppers finding social distancing difficult in much smaller stores.
Fingers crossed that TSCO can hold on to some of these when a degree of normality returns.
Sold some shares elsewhere to top up my TSCO holding.
I personally think TSCO has legs and SP is still on the low side.
But, just my thoughts and not suggesting buying.
DYOR and GLA.
Yes it is over bought but the likes of TESCO being marked down on a big buying day is crazy. Supermarkets are having a bonanza timethanks to Covid and our lovely Government?Special Divi and share consolidation plus a possible increase in Annual Divi make this look like a great hold.
Like you I am not keen on buy backs. It seems a waste of cash and short sighted. Surely any business can get a better return on spare funds than a market sensitive buy back. Look at the likes of LLOY. MVI and OCI did improve a little with buy backs. In general, why spend money on something you can't control. That said, I am probably wrong and they will announce a buy back scheme tomorrow :-)
Rosewall
Thanks for that, appreciated. I am no fan of MF but it just appeared in my inbox a week ago hence my mentioning it.
I've never been keen on buybacks and I am very pleased to be put right on that fact.
Hi Barchid
Motley Fool has so many contributors all with different perspectives which confuses me. One contributor will say Tesco is great, the other will say it is rubbish. Usually within a day or two each other. I am convinced that the contributions are to suit the writer's own financial perspective.
The glaring anomaly in the MF write up is the sentence "It hasn’t confirmed whether this will be a special dividend, or a share buyback. ". I know that this is the panto season so, in the style of Widow T****ey, "Oh Yes They Did". Tesco have said right from the start, without equivocation, without ambiguity, that it will be a special dividend. Not once, from the initial circular to now has there ever been a scintilla of a hint that a share buy back is being considered. I really have no idea where these people get there "inside information" from.
Thanks leas, I will get some today, have a good Christmas.
Boris, I think you will have to be on the register by the 11th Feb.
Rosewall
Not sure of a share buyback either. The dividend payment date has been announced subject to approval at the GM on 11th Feb. I think the terms 'on or around' is probably due to the uncertainties caused by the virus. so we can expect the payment date to be 26th Feb.
Hi, can anyone tell me when I need to buy shares by to qualify for the special dividend please?
Rosewall
Sorry, 1 piece I left out was that all should be made clear in the document due on Jan 25, according to their very recent rns.
Rosewall
As I understand it, am not saying I am totally correct as it is a labyrinthe this project, the actual dividend & specific payment date has yet to be annonced, but a good indication given ?
A lot of press/commentator coverage on this has mentioned a buyback & a dividend, a recent one is 12 Dec on motley fool which is easily googled.
Hope this helps
Not sure, but could be a rollover of debt at better rates. Great time to take on low interest fixed long term debt whilst rates are so low if you can get it, knowing that inflation will eventually erode its value.