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I bought the shares on Friday at 2.39 as I thought it was a bargain. Now can I sell on Monday without losing the dividend. Also I don’t understand if Tesco is giving this dividend and then taking back your shares u lose out. Will the shares rise on Monday
j
''Will the shares rise on Monday''
It will rise or fall like any other day.
The consolidation has been calculated to give a similar share price as it closed at yesterday.
j
you will have less shares to shares on Monday.
j
you will have less shares to sell on Monday.
Wow long term invested it’s the weekend give it a rest!
y11
''it’s the weekend ''
Have you nothing better to do?
Tigra,
Thanks for sharing this.
In my own case, it is consistent with my own "belief" as to what's happening (I prefer "belief" to "understanding"...).
ATB,
Mike.
Tigra
That was well put!! It was Dave Lewis' idea of supposedly rewarding share holders for their patience because of the accounting scandal!!
I shall kick the punt in the shins if I ever see bump into him!! :) :) :)
You have this spot on Tigra thanks for your post. Dave Lewis stated that he wanted to repay the ordinary shareholder for the financial mismanagement debacle with additional dividends following the sale of the Asian business. Well the board have given us an additional dividend (thanks) & then taken this away by reducing our holdings (no thanks). There just aint no reward so Mr Lewis hasn't got his wish & this board should be lined up against a wall and made to eat some Tesco's value sausage rolls, they really are abysmal but only cost 99p for 12!
Gary,
Do feel then that Mr Lewis wouldn't of reduced the share total then had he still been CEO??
Nige
Sounds like HL don't know what they're talking about either, which is worrying. Their comments contradict themselves.
Tig
There has been no trick. No one has made money from shareholders.
It has all been transparent. All assets in a company are reflected in the market cap until they are released to shareholders. The share price since March HAS reflected the fact of the Asian sale and what was to be done with the proceeds.
Without a consolidation, the share price tomorrow WOULD have been about 190p to reflect going XsD.
?? Love the punchline ??
Tigra,
Surely there's been a certain amount of manipulation on the part of Tesco!! If the current SP was too high then it would cost Tesco more to buy back, so hopefully now things will be able to run it's natural course going forward and we should see SP price increase!!
Nigel
Tig
'' we will all be no better off in cash terms. ''
Shareholders have already received the benefit of the Asian asset sale reflected in the share price since March. It's as if some shareholders want the benefit twice. As I have already said, without the asset sale, the share price most likely would have been a lot lower just as many other stocks are in the Market since March.
Ok so you rent a house out and the rent goes up! Does this not mean the valve of the house hasn’t just increased?
Tig
''and be liable for (in some cases) a 32.5% dividend tax.''
I won't be paying income tax on my own capital being returned, no matter what others may want to contribute to UK plc.
Tesco share price was actually been held back by the fact of the dividend at 51p and the spilt of shares. Why would anyone pay more if they where getting them taken away and given back? Now this has been completed people can make up there own mind what they will pay.
''If the board wished to reward us they could very well have said that they are plugging the gap in the pension and are using the remaining £5 billion to significantly reduce debt ''
It doesn't matter how many different views there are as to what should have been done with £5 Billion, the fact is that there are people who run the business who are paid to make that decision. Shareholders could have voted against that choice.
There were some very big buys after hours on Friday 1million and 2 million. I think the money men would have worked out if it was worthy or not.
Tig
It would have been better to have created different classes of share with the money to give people a choice. You can have a 'income' dividend or a 'capital' dividend. I/ my accountant will be classing it as a return of capital as it has come about by the sale of assets.
What others do is a matter for them
Tig
''FTSE 100 firms are dominated by institutions.
''
So the majority of shareholders were if favour of the return of capital rather than pay down debt.
I would rather have the capital also, as I would be hopeful that I could get a better percentage return on it ,than Tesco debt interest rate.
Anyone reinvesting the capital return back into Tesco will have a greater share of the company than they did before (stating the obvious), or can be invested elsewhere.
For the majority if they feel the need, would be paying 7.5% of 51p to UK plc, if the threshold is breached, so not enough to worry about.
Tig
''This doesn't feel very special at all ''
It is only called a 'special' as it's outside the scope of a normal dividend income return.
Tig
''I just don't trust this current board based on this special dividend coinciding with a consolidation''
It is a bit obvious it should be done at the same time as capital coming off of the balance sheet.