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Hi again Pantherm100,
Sorry I've now lost track of which of your posts I'm replying to!
I once saw it written:-
There are companies run *by* their management, and there are companies run *for* their management.
I'm sure everyone will have their own opinion here...
All the best, Mike.
p69
''but his portfolio will still show it as a 10% loss.''
If someone bought 10,000 shares in a company at 110p per share the day before it was going xd with a dividend payment of 10p, I think you will find that on xd day the portfolio will show a loss.
I'm fed up with so many people who do not know the simplest of basics. I suggest to these people, learn a bit or stick with cash.
Typo error. for O Neil. Read" consolidation. Lolol
Chris1308
Just to clarify matters, you do not pay income tax on this special dividend. You pay Dividend Tax on any dividend payment over the £2,000 limit and then, only if the shares are not held in a tax wrapper such as an ISA or SIPP. If you are a basic rate payer then you will be paying 7.5% Dividend Tax on the excess.
There won't be many who will pay tax on the dividend.
Hargreaves Tesco data factsheet is showing a circa 0.53p rise at 22% on Fridays close! Seems they are working on a theoretical 1.88 pre consolidation assumption. The brokers seem to be treating it differently according to how they see the SD/ O'Neil issue. Not that it matters. It's all the same in the end lol
Pantherm100, you *not* been burned.
Did you read Tesco's RNS, as I suggested in an answer to another of your posts, where it makes it absolutely clear that the 50.93p dividend is on the number of *old* shares, not the number of new shares?
Mike.
Thanks everyone for your views particularly MikeM14
Whatever the outcome I fail to understand the logic of this process adopted by the Tesco Board. Very disappointed.
Im with Tigra on this .... why are people not accepting that this SD has been of NO benefit to the shareholders?
just as Lloyds and the banks became an ATM for the false claimers , this SD has been an event for TSCO to enrich the government coffers. ... the dividend is included as income and subject to Income Tax when you complete your Self Assessment ( allowing for the miserly £2K which used to be £4K not too long back) .
It took me ages to accept that I am not going to be a penny better off , in fact shareholders have again been cruxified by the BoD .... a repayment of capital has been given to us as income . So I'm an ex-TSCO shareholder until the price falls back to the 220 range which it probably will.
GLA
chris
£3 + ??? Dream on. The only consolation is I’ve been burned more than you.
tom1,
I think you're absolutely right that if you automatically reinvest the dividend in more shares the price will probably be slightly higher because of all the buying at the same time. However, the broker charge/commission, if there is one at all, will be very small. Whereas if you took the dividend as cash, and used it to buy more shares at a time of your choosing (eg when the share price is lower), the broker charge would be higher. A bit of "swings and roundabouts"!
Regards, Mike.
Thanks Pmoran - that is the way I see it.
I had 1462 shares at 215p = £3143.30 so this showed a healthy profit around £395
I now have 1154 shares. That averages 272p.
"Loss" is 57p per share.
The market should be reflecting the lower number of shares in circulation but the current price is 243.45p so 28.55p "down".
I get a special divi that, lest we forget was not meant to impact the share price, on the 26th Feb of 50p so £731. This means the nett figure is +£6.53. before tax. After tax it will be negative as it is being paid as a divi. The problem is that I will still be showing a greater loss on the dashboard because even if I put the divi in (old profit+divi+£6) I will still be down as it won't average down enough.
In other words the special divi from the sale of a large chunk of the business has had a negative effect on me.
I am hoping that the share price goes up to reflect the smaller number of shares. £3+ should be in order.
Tzap
I was migrated to II from Share Centre last week. So far nothing but trouble and irritation. Today I have the same situation as you - and unable to trade. I'm seriously unimpressed with II. How long have you been with them?
Agreed Trojan. Now there are 7,731,707,820 Tesco shares in total, whereas last week there were well over 9 billion.
These "new" shares are "bigger" than the old ones -"par value" (aka nominal value?) 6.3333p, whereas the old ones were 5p.
Mike.
And on the 26th you can reinvest it.
Hi Pantherm100,
If you read Tesco's RNS (Regulatory News Service) announcement of 25 January at 07:12, "Notice of General Meeting", it should all be clear in there. Press the "RNS" button near the top of the screen, and all their announcements are there, in date order.
I hope that helps,
Mike.
Good thank you. For a minute I thought I'd lost over £7000!??
Thanks Ardvark , but you can select to reinvest the dividend straight into tesco shares like any dividend , or take in cash i suppose you can choose before 26 th , will make decision based on share price nearer time
I like to look at it like this- every Tesco share today represents a higher percentage of the company than it did on Friday.
I had the same with cairn energy , it took to the next day for the new share listing to show on my ISA account
You will get the price the market is trading at when you purchase. Not backdated. If you buy on the 26th you will get that day's price at that time.
I calculated my dividend on Friday and bought the equivalent number of shares at 2.37 but have a longer-term view than many here.
I had 11436 shares in an investment account now 9028 shares,(so thats makes sense). 3044 shares in stocks and shares isa , still reading 3044, and not 2403? but the value on the ISA is £0! Both with Eqi.
You would be buying at whatever the relevant share price is on the 26th or whatever day you to choose to buy from that date . The special dividend is paid just like any other as a cash some into your account . Have recently been through the same procedure with cairn energy who had a share consolidation and special dividend
The dividend was paid at close on Friday , so has to be on old holding surely
Question , if you reinvest special dividend in shares i, do you buy at the price close Friday , or on the 26 th ? , Also if the majority do reinvest this should in theory result in a price rise should it not due to large demand , any thoughts , thanks
Hi Mike
I had 6250 old shares which translates to 4934 new. My calculations are based on 51p x new (not old share quantity). That would make a difference. Are you sure this is correct because my understanding was clearly different. If so how do you know?