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It is a lot to have invested in one company. Some RBS employees lost a lot of money when it went to ruin and they lost a career's worth of bonus shares.
One thing for you to consider is whether to use this as an opportunity to diversify 25% of your holdings into something else. you could open up a stocks and shares ISA with your bank and fund it with your special dividend.
Travel and oil shares are at a long term low at the moment for example and depending on your appetite for risk might make you a lot more money than Tesco over the next few years.
You need to consider it thoroughly!
Fat fingers couldn't spell dividend on my phone, apologies
In response to 2), the 12th is the register date. This is the date you need to hold shares on to receive the divident, not the date it is paid. It is then paid on the 26th at whatever price it is on the 26th, providing everything is voted in favour of.
Nigella...your sentiments echo mine....I realise now I had tunnel vision for a whole year around the Asia disposal and expecting that to launch it into orbit at some point ( and yes i got the business would be reduced in size but the pension deficit etc if i figured more than outweighed this) I applauded the return of the govt rebate ..smart i figured before a massive SD to avoid the talking heads putting the boot in....when the SD and consolidation became crystal clear ..not impressed....SD ? really ?..if it doesnt waddle like a duck quack like a duck ...it;s not a duck...i think they have gotten some poor advice from the city on this....Leas I take your point that didnt do this over a coffee in a starbucks but let's face it...the city are not exactly an exulted bastion of getting it Right are they ? Or putting their customers interests in front of their own....I am a fan of KISS....Keep it Simple Stupid and the SD and consolidation open up a can of worms because it has varying implictions on different investors....that should have been avoided
Newby here and first time poster, so pls be gently, im a Tesco employee and looking for some advice from all you smart peeps?
1. Any Tesco employees that have shares tied up in a SAYE scheme should see a greater return in the 2,3 or 5 yrs time they mature as they have already been allocated a set number of shares and hopefully are well over £3. Tesco has also put in 2.5billion into the pension so this “should” make the company more solvent/appealing for future investors.
2. I usually get my dividends paid by reinvesting in more shares, instead of cash, when this happens on 12th Feb, will the shares from my “reinvested dividend” buy the shares and put them into my account straight away?
The scenario I do not wanting is for my dividend to be paid to me on the 12th Feb i.e. Sold and rebought on 26th, a lot can happen in that 2 weeks, theoretically they could be selling my dividend shares at £2.40p and buying them back on 26th at £2.70p, if this is the case I would just change to a cash dividend and hope they are below £2.40 when the dust settles.??
3. I have 21,000 shares in Shareview, I’m looking at around £10,600 dividend and proby have to pay close to £850 tax, then there is the prospect of the shares being less than £2.40 on 16th, 17th etc, I don’t have any ISA accounts, what would you recommend?
Ideally I want to keep my shares in for the long term i.e. 10 yr plus but maybe think a stock & shares ISA etc??
Help Please , my broker - I'm a small player wasn't that clear, if I have a modest long term CFD on Tesco going long - I believe in the model, I won't get the 51p divi - a capital distribution as I'm a leveraged position and its a capital distribution - which I totally understand - if true ????? , but how do you get compensated for the 4/19 reduction in your shares post Share Con - so I can't plan. I would appreciate anyone's help to explain. Nothing against my broker, I'm small fry. GLA Ta
Hi I’m with equiniti
Hi I’m with equiniti
Probably wrong with saying this, but I'm going to anyway.
Other than the occasional spike, the Tesco share price is hopefully going to be reaching new highs than it has in the last 5 years, new broker targets of medians and highs range from 2.88-3.15 which, whilst not a 51p increase, isn't too far off. I guess what I'm trying to say is if after consolidation, the SP then goes to a new languishing price of around £3, dividend yield increases due to less shares in issue - in the long run, it should all end up relatively good. Right?
Good luck Nigella but sometimes you have to look further than the end of your nose no disrespect and you could have sold for 2.50 about 2 weeks ago anyway good luck.
thank you leas..
Nigella
TSCO was up when the market was down. I still think it is being held in this trading range as ii take positions. Hence the algo trading. I’m looking more long term and here perhaps for different reasons.
I wish you all the very best with your future trading.
yes....we all have our agendas .each to their own
I`m off with my spondoolies... to pastures very new (for me) PCR and Lateralflow tests vie Myhealthchecked MDH.
and one for the future ..... Hydrogen........AFC energy ......AFC
O a purely selfish view for myself and colleagues, a special dividend without consolidation, would scupper the SAYE plans. And before any one moans, without colleagues there would be no Tesco for you to moan at.
I sold my holding in my ISA and kept the ones in my SIPP, I expect the SP to drop a bit more after the dividend and planning on buying back the ones i bought, its not free money that we are getting, So i have edged my bets
well, I hung on and hung on hoping to see £2.50.....or more .
I was horrified from the start , when consolidation was announced.
My perception is...... I will be cashing in 20% of my holding , with the prospect of a very high break even on my remaining shares.
As Boris and Doris said ....for example Taylor Wimpey and others .. pay a straightforward special dividend ...job done .And the share price generally always recovers afterwards.
Very disappointed in TSCO for doing this ....5 bn payout to shareholders HO HO ....I think not.
markets up for 2 days now and TSCO is dead in the water.That speaks volumes as to how popular it is.
I baled out at £2.42 ,small profit .
When I do the calculation based on owning a 1000 shares there is a slight fall 0.09%.
So take today’s price of 242.95 (might have moved by now). So the value of 1000 shares is 2429.50
Now the dividend for 1000 shares will give you 509.30 and the 19 for 15 shares trade will mean your old 1000 shares is now 789. At today’s market price they have a value of 1918.03. Add the divi into it and the total is 2427.33 so a slight drop of 2.17 ( 0.09%) Not a lot but hardly the bonanza expected.
Same with any amounts of shares. So it appears that the best case scenario is take the divi and the price increases after that, will having a smaller number of shares help shareholders in any meaningful way. Don’t think it will with all other things being equal.
Will stay in just for the ride.
I'm still hoping this will get to 255ish before ex dividend ..
BorisandDoris
Compensation for the accounts discrepancy has already beebn paid out, the matter is settled.
Thanks for this info,
I personally think this consolidation etc is a total waste of time and money.
I got a special dividend from Taylor Wimpey and it came as a cheque in the post, no messing.
I think that a way of dishing out the left overs from the Asia sale ( after sorting the pension) would be a payment to all the shareholders who lost money when the accounts were falsified.
Good luck.
Just a heads-up to any employees who hold Buy As You Earn (BAYE) shares etc in the Share Incentive Plan (SIP) and are thinking about selling any before the SD and consolidation. Looks like you'll need to make a decision or move them before 8th February! If you haven't logged in lately, there's a message within the portal saying:
"Please note that, due to the proposed Special Dividend and Share Consolidation, if you hold shares in the Share Incentive Plan (SIP), you will be unable to access your SIP account and sell or transfer SIP shares between 8 February 2021 and 16 February 2021"
If you are with H&L call them and explain what you want to do and they should be able to help, I hope you get sorted
I'm wondering if the shares may rise up to the 11th? I may sell although I do think they are worth having over the longer term, profits from being one of the few open during the pandemic should be stellar.
Slightly confused about how a trade may be treated for CGT however if I sell before the dividend and buy back after the consolidation? It's a strange scenario as normally a share would dip by at least the divvy but here you have a mechanism in play that turns 19 into 15 shares maintaining the current £2.40 so I could sell the 19 now at that price but will buy back at the same price after the 11th completely missing the 50p??
Confused by this unless the price rises to £2.90 prior?
If regular dividend per share does not scale up so as to compensate for the 19 to 15 share change then we will indeed have lost out.
Hi I have stupidly taken this years share option not realising what would happen with the dividend. I’ve now got around 10k in shares and I’ll be stung with a large tax bill from the dividend. How quick can I open and transfer my shares into an ISA anyone got an idea thanks