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I had 2417 Tesco shares before consolidation so I bought 15 more on Friday giving a total of 2432.If the consolidation is divide by 19 and multiply by 15 I thought that would be exactly 1920 new shares . My account (with ii) has only been credited with 1919 shares. Have I got the maths right before I contact them? I bought the extra shares to avoid losing the odd bit which was not a whole share.
samson123,
I'm with II as well, and they got mine exactly right. In fact, a week or so before the div/consolidation I topped-up my holding of Tesco for that very purpose (ie to slightly increase my holding to part-way compensate for the forthcoming reduction, but also to ensure that I had a multiple of 19 so as to avoid losing a fractional entitlement). On the face of it, they've got yours wrong and you need to query this with them, but:-
(i) I assume your 2432 were all in one account, not spread across trading account, ISA, SIPP or whatever, and
(ii) I wonder whether because you bought the extra shares as recently as Friday this was past some administrative deadline. I don't remember II stating a deadline explicitly in their corporate action notice, but I did see other posters on this board, last week, mentioning deadlines from their own brokers such as 16:00 on Thursday (or Friday?).
Not sure how much help that will be to you.
Regards, Mike.
Figured it out early this morning 2417 gets 1908 plus .15 (a bit) 15 shares gets 11.86 (a bit) knock 9off the two bits which go to charity makes 1912 plus two bits . Which charity have I donated to?
sorry should be makes 1919 plus two bits donated to charity (even confuse myself!!!!!)
samson123,
"Which charity have I donated to?"
It goes to Trussell Trust (forgive spelling if wrong), for foodbanks.
Plus the charity via any tax on dividends is "UK plc"...
Mike.
I am sorry I am been really thick I have 10,000 shares before consolidation, how many do I have now, I bought them for around 3 pounds before consolidation
Samson,
I bought 10,000 at 3,10 week ago. for 33,000. so the divi get is 5,000
not sure how many shareS I get though?
7890.
Hi Sydney
If you pop into your online account then you will see the effect. Essentially divde by 19 and multiply by 15.
if I bought 10,000 at 3.13
and I get 5,000 dividend
and now I only get 7,894 at 2.46 , that means I walked in to a $6k loss?
Hi Sydney2021,
You should have 7,894 "new" shares. Multiply your "old" holding by 15, and divide by 19. That makes 7,894.736 but unfortunately you lose the .736.
Plus you should get a dividend of £5,093 (gross of any tax you might then owe) which you should receive on or just after 26 February.
I hope that helps.
Mike.
Sydney2021,
You say "I bought 10,000 at 3,10 week ago".
That can't be right. They haven't been above £3-00 for the last several years.
If you go to the top of this webpage, and press the button where it says "TSCO Share Charts", then you can select a 5-year timescale.
Mike.
sorry too new phone bought at 2,43
mike sorry typeos all over the place, so the divi makes up for the consolidation as such, I lose 2,200 in shares but gain a special divi. robbing Peter to pay Paul as such
so really tigera the drop in the amount of shares is off set by the special dividend
see my earlier posts regards robbing Peter to pay Paul. The SD actually isnt as you lose 25% of your holding going forward. The share price hasnt moved from its 240-245p range pre/post consol. So its how you cut your numbers. Some advise that the SP would have fallen on exd by same amount of SD which is hwre the 189p figures come from, but SP was maintained at approx 243p, so there is a "win". There are a number of "jam tomorrow" statements regards dividend increase as fewer share in circulation share same/bigger divi pot, and the beter financed organisation should be more attractive to investors and hance see SP gains . Your choice if you go with jam tomorrow. My concern is that despite all the thousands of posts on this consol / SD episode, the market will dictate te SP and hence the effect all this has had personally. The bottom line remains that you dont get the full SD in your pocket, you reduce the SD by the effect on your holding at todays price.
example pre SD/consol 2550 shares held at £5610 purchase price (thats my profit / loss line). Post SD/Consol 2013 shares at 244p = £4911 PLUS £1300 SD = £6211 - £5610 = £601 profit ON INITIAL OUTLAY. However, again the issue is DRIP or CASH take. If cash, you are then open to holding fewer shares and hence possible lower future dividends. Its a marginally better than standstill position and I for one wish BoD at TSC had been so much clearer on the netting out final position. Hope that helps clarify.
Or, the special dividend is cancelled by the reduction in shares held post consolidation. In short to effectively stand still you probably need to reinvest the SD via DRIP so that you end up with same number of shares pre SD/Consol with a small gain which SHOULD (see "jam tomorrow" comment earlier) generate greater future dividend payment due fewer shares / same or increased divi pot scenario. Depends which way you want to cut it... but bottom line is, you didnt get the SD in full as you lost 25% of holding at same time. Its again your choice if you accept that SP would have fallen by 51p on EXD argument and would now be holding same no. shares at approx 190p ....... Tigra's needless muscical chairs comment is a fair assessment...... All i looked at was what did I spend initially on TSCO shares, then I recalculate my new holding at todays price (244p) and add my SD to the total. As its approx £600 above my initial spend I consider myself marginally happy, but would have been happier with the full 51p SD of course, but accept I would then have to live in short term with a SP fall on EXD calculation. So, it really is a personal position at the end of the exercise and tinged with do you expect SP growth and better divi's in future (same for all investments am sure!). The only impact i dont comment on is the tax position , as it should be in an ISA or SIPP wrapper if a sizeable amount. My focus now is past SD/Consol and what will upcoming reports show as trading results and will this make up for the SD/Consol shenanigans ......... lets hope as I am sure we will all have holidays in the sun to pay for !
I assume as long as you bought in oringinally below 2.43ish you shouldn't be out of pocket but before I rush to buy back to my original position I wonder how much of the increase in SP recently was driven by people expecting some sort of pay out?
Mane
I would say that there was a last minute sell off, with people worried about tax - resulting
in about a 9p drop, which is why I purchased on Friday.
MANE
No doubt those that have sold or will be selling in the very near future. I think by the end of the month investors will have a better informed opinion as to whether or not the SD was the best strategy.
touched 250.7p on 27th Jan
Hi Mane, yes luckily I bought in at 219p and thats why I am approx £600 up over all on todays prices. However, for those who took prices North of 230p and into 240p's I dont think that the result will be as positive. Again, all my calculations are a simple comparison in terms of what did I originally pay vs whats it worth today. All other if's,but's and maybe's will take their turn in coming into todays price calculation (ie if SP goes up/down, or increased divi's etc) but for clarity of thought as a simple man I do my calc's based on whats known (my spend and return), its less complicated then to decide what next move is. As I am up presently I will hold longer as I am intrigued as to what the next divi position will be. Previously believe it was a 6.33p divi and if I am to make up for my lost 25% of holding and to get same divi then TSCO need to offer a 9p dividend. In itself not a massive jump, but it is 25% divi increase in its own right...... lets see. I do have a few other stocks the like's of TSCO, a bit of a plodder, and I want to get something a bit more exciting ...... where's that cryptocurrency investment manual when yo need it!!