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Just had a check back to October when the initial buyback started, they've bought back ~115m shares so far. A good start but some way to go before it starts impacting dividends materially.
Inflation and pressure on consumer spending is the watchout here, though they historically navigate these spells well when they happen.
Thanks for the excellent summaries
I have bought today for long term income
The final dividend to be paid on 24/6/22 is 7.70p so if you add that to the interim of 3.20p already paid then you would get to 10.90p for the year.
Little bird told me we are getting 10p per share is that true has anything been said
Owl85 this is in addition to the current £500m buyback program of which only 300m had been satisfied at the time of the announcement so effectively there is demand from a hungry buyer for £ 950m that needs to be fed before Easter 2023 or spoon-fed at the average rate of £ 19.75m per week which is only about 10% of the average daily volume (20.88m) - the capital reduction should bring it well below 7 Billion which in turn shall increase the cake size for the dividends yum yum ??
Seen that buybacks are commencing, £750m to spend. Some useful inormation re buybacks and the rules regarding them in the RNS, I know there are often questions around buybacks and what a co (not just TSCO) can and can't do with them.
People are tightening their belts, possibly meaning less spending on takeaways, so may be doing more home cooking, which should bode well for supermarkets even with their higher costs. IMO only.
Regards
I can't see the value. It's dropped below support in February and through the 50day and now the 200 day moving average. Outlook doesn't look good with the squeeze on living standards from inflation and higher interest rates.
I know the feeling!!
Sorry, FredRubble's fat finger hit the wrong key! Happy Easter ??
Do you have to shout?
thanks i will do that
AV53 > I AGREE WITH YOU ON THAT POINT THEY SEEM TO HAVE FOUND A SOLID BUSINESS FOUNDATION TO KEEP THE COMPETITORS AT BAY WHILST STILL GROWING TRACTION MAY IT LONG CONTINUE AND WE COULD SOON BE TALKING HIGH 5 ??????
If the shares are saye I think it's a fixed price you will have to contact them
hi, can anyone tell me how much equiniti would charge me if i sold shares to the value of £10000.
thanks
It's a buying opportunity. Just because the recent report said the future profits Could be Low or Challenging does not mean a drop of 5)/10 %in price. I am confident staying invested and good it makes more sense with decent Dividends. Hoping for. £3 ....
I've added here, just some spare cash doing very little so I figured the 4% dividend is worth the risk plus I take a long term view with holdings.
The Times pretty much calls it the same as me today:
https://www.thetimes.co.uk/article/put-tesco-into-your-basket-of-stocks-rs803p0gt
In reply to Wayne1976 - I understand that if company buys back shares then number of shares they have to pay a dividend of day 4% on reduces aka liability.
If you have debt that’s costing you say 1% (another liability) then it makes sense to close down the liability that costs you 4%.
Plugging pension hole with money you can invest for better returns than it costs you to plug hole e via continued debt also makes sense.
Well that’s my view on it anyway.
I always remember when I had a tracker mortgage and it’s rate of interest went down to .5% (1/2%).
I had £100k to pay off debt, however I left money invested paying me 3% at the time.
Mortgage was paid off scales tipped the other way.
Owl85
Ive put a note in diary Sp drops on result many thanks for info, ive sold out now n kept profit in shares + dividends , "Every little helps" , as they state in ads Gla
Just back in here for divvy, results, solid stock.
Agreed 2. The only fly in the ointment that I could see was if somehow TSCO entered the bidding for Boots. But I can't think their management could be so stupid as to involve themselves with such a flee-ridden dog.
Agreed.
A reasonable dividend and relatively safe defensive stock are attractive in these times.
Top up and forget
I've taken the opportunity to top-up this morning. My belief is that the company has taken steps to make its retail side more streamlined and food retailers have the ability to effectively pass inflationary costs through the chain. They squeeze suppliers while at the same time raising their sales prices in what might be described as 'the fog of war'. I have many years of personal experience on the supply side and of course, I buy food and drink like everyone else. Quite surprised at the level of rises in Aldi - which is good for Tesco; we've established the point at which the so-called discounters can no longer undercut the old-guard supermarkets. Also, margins tend to be higher on own label products, so again there is an opportunity to maintain overall profits. I think trading statements have to be both prudent and modest. Any celebratory comments immediately attract bad press, which then needs to be explained and defended.
What’s the benefit of a share buyback scheme instead of paying off pension defect or company debt? Asking for a friend… having seen the share price hit 300p recently it’s disappointing to see the movement over the past fortnight. Would we expect to see the price rise again as the buy backs continue?