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How can it be priced in if the special dividend has to be voted on by shareholders?
As previously announced, Tesco intends to return c. £5 billion of the net proceeds to shareholders via a special dividend, together with a share consolidation, and will also make a significant pension contribution of £2.5 billion to the Tesco PLC Pension Scheme shortly following completion. The special dividend is expected to be paid on or around 26 February 2021, conditional on obtaining shareholder approval at a general meeting which is expected to be held on or around 11 February 2021 (the "General Meeting").
Todays RNS
A circular containing further details of the special dividend and share consolidation, as well as a notice convening the General Meeting and further details about the resolutions to be considered at the General Meeting, will be sent to Tesco shareholders on or around 25 January 2021.
Im surprised this is considered priced in? a 50p dividend has been mentioned that would make the true price roughly 175 which seems too low?
Great news. You could use the special dividend to buy more shares at the adjusted price. If the yield remains the same then this is a great income share.
22% div. I do hope see an extra 10p on top of the current share price though
22% div. I do hope see an extra 10p on top of the current share price though
The Asia sale money is already priced into the share price it seems, we have it already, but maybe we see a small rise over the next few weeks
It doesn't feel like a special dividend if we are to get a reduction in the number of shares that we have, I fully understand that when a company pays a dividend, that money is deducted from the share price on the ex dividend date, I don't see where we are getting the extra money from if they take say 25% of our shares from us. I would have thought that anything extra should not effect the SP.
Have we had previous indications to the consolidation that was mentioned. So we’re do we see this going before the 18th then plus 30p maybe.
Wonder if finally seeing the announcement of the special div will lead to a mini bull run in tesco shares, good buy for income funds wishing to show they are maintaining a large div, add some tesco to increase the average payout.... From a tax perspective not great though for small investors specially higher tax rate payers.... Some might even wish selll before the div, buyback after.... (not advice)
Great we have a date. Now to see how this will affect the share price given that I'm sure Tesco intend to keep the regular dividends at the same level.
The consolidation means after the special div, let's say the share price falls 40p,{for example) what will happen is the consolidation will say take your 100 shares, consolidate to say 75, all of which have a sp similar to before the special div, kind of feels like "vanity" on the part of the companies that do it as they don't want to see a share price like 178p,
Consolidation just refers to the start of a share buy back program and/or the cancelling of shares held in treasury...all good.
likely to be paid in Feb 2021 and sale completed approx 18th dec 2020. All good news for shareholders. Anyone know what the share consolidation is about?
So what if you cannot get strawberries or French cheeses in January. Perhaps go back to seasonal food only available from the UK. Imo, people will have a shopping budget to spend on their shop and they will spend it come supply issues or not.
Margins is what analysts will be looking closely at and I’m sure rising costs will be passed onto the consumer.
I can see a good degree of panic buying prior to January 1st if there is a no deal.
People will gorge themselves well into January, what they don't eat they will throw away and buy more .. it's already a record breaking 4 weeks .. then maybe brexit will become an issue, but as Incle_Doug says, we'll all still need to eat ..
deal or no deal - we'll still need food, etc.
The deal appears to have been in the oven for too long, i'm surprised the SP is not lower.
When is the Asia sale likely to be approved? Do posters think it has been fully reflected in the current SP, as it looks like it has not - Newbie
I'm hoping that something will come along soon and light a fire underneath Tesco, as the SP has gone back to flailing since that nice little boost 1-2 weeks ago. Despite the excellent sales, maybe it's the uncertainty of this looming Brexit deal or no deal that's keeping it grounded?
Maybe hedge funds moving money to more defensive shares but with all these A algo trades then they can move the sp up or down to suit their own agenda. Bought last week at 2.26 and hoping that the sp moves in a direction that fits my agenda. ;)
Not sure, but one at 18m, three at 2m, 1m, and a handful at 500k plus .. probably 20 buys in all over 100k .. I always check out the activity after 4.30pm as maybe an indication of the day ahead .. good news today regarding sales and a whopper of a month ahead ..
UK grocery sales up 10% in November with almost £11 billion in sales. Figures obviously driven higher with lockdown but the majority of the UK is still under the highest of restrictions making that trend continue throughout December. I know not many parties over the xmas period but restrictions will still put more money in the till.
mags1444, did not see the trades yesterday at the close. Could they have been UT's?
Comforting to see some very big buys late on today .. showing confidence, or maybe something is about to happen ..??
Co Op, M&S Iceland and Waitrose refusing to return cash back to the government. Pity consumers don't vote with their feet.
https://www.thisismoney.co.uk/money/markets/article-9019433/Four-supermarkets-resist-calls-return-pandemic-tax-breaks.html
Agreed, never keep all your eggs (or too many of them) in one basket. I have spent the last hour changing the structure of my pension fund for the next ten years. Interesting, that the Tesco Shariah Fund has romped away. Leaves most of the others standing.