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Tesco did very well, bought the dip.
I expected this to fly on opening! I feel lucky to pick some up at 211. Not many companies left paying a divi let alone a special divi to that amount. I feel this is a safe haven whilst there is blood on the streets!
I have been buying this over past 2 weeks at up to 223p and will now hold until reaches at least 255
Not sure why that big fall....looked a bargain at this level. Struggled to buy though, tried at 207 but eventually had to pay 211. Lets see where we end up today.
Market share on dot com will rise ,fuel cost significantly reduce at the moment.
Tesco is delivey a great service to the customers and effected people.
This will not go unnoticed after we exit this crises.
Sales in some shops up 100% mulitbuy promotions stopped.
H2 they estimate for the 5 Billion special divi @ around 51p per share if my memory is correct.
30% uplift in sales Q-1 was higher than the market was predicting.
9.7 billion
5bn returned to shareholders as a special dividend from proceeds of Asia sale.
Doesn’t say when that will be.
How many Tesco shares in circulation?
BUT ... net debt down 8.4%, revenue up 1.3%, divi up 58% and most important point is, TSCO is a viable business in current environment.
Although profit came in well at on revenue of 63.78 billon . The profit was 2.96 billion pounds that’s better than forecast
4th quarter like for like sales Down 0.3%!. Um ok I know we hadn’t quite hit the covid panic buying month
Now up to 45,000 new people, 10% staff costs, more vehicles and 15% prolonged staff discount (turns a profit into a loss)
Is the business rate holiday just a deferral until sometime in the future? If that is the case then I would still expect them to pay shareholders and also pay the business rates.
Atb for tomorrow
They have benefited from the business rate holiday but have had to adapt and increase manpower to deal with a new consumer delivery model & with thin margins that will probably in the short term off set any sales revenue increase.
Now would be a good time to reward shareholders in the same way and along with further rewarding employees.
Lets see.
GL
I suspect they'll take the middle ground and suspend the dividend; after all Tesco along with other supermarkets have taken advantage of the generic business rate holiday even though they are one of the few businesses to have benefited from the current crisis.
Hoping this finishes with a rattle be very disappointed if it goes red again .
Let's wait for the news on Wednesday morning. I am hopeful that there will be good news, seemingly we have been getting a lot of bad news on a daily basis recently (global escalation of the coronavirus problem, stock markets have had the worst Q1 ever in recorded history, oil prices have plunged, potential global recession looming etc). Fingers crossed, TSCO is a solid defensive stock and one which we hope shall do well in the current situation that we face. GLA!
I think Dave Lewis has handled this very well and certainly gone up in peoples estimation
Tesco has done all the right things with its 750 million tax relief cash 10% extra pay for colleagues. Full pay for high risk colleagues self isolating for 12 weeks .Full pay for colleagues with the virus .Two weeks full pay to stay at home if a family member living at the same address shows symptoms. Thousands of extra colleagues employed to support absence also all home shopping deliveries being bagged which really slows operation and iflates costs.So my point is the dividend payment is fully justified and I expect Tesco to do the right thing and honour it.
Some positive points in their latest updates to customers;
Supporting our colleagues
We’ve already confirmed that we’ll pay our vulnerable, pregnant and self-isolating colleagues from day one. We also introduced a 10% bonus for colleagues in stores, distribution centres and our call centre.
From yesterday, all our colleagues will get a 15% discount on all their Tesco shopping for the next four weeks as a further token of our appreciation.
We’ve also recruited 45,000 temporary colleagues to support our stores and distribution centres, given the number of colleagues who can’t work due to COVID-19.
Supporting our communities
Yesterday we confirmed that we’re the retail partner of SalutetheNHS.org which will provide one million free meal parcels to frontline NHS workers. We’ll donate all the food and ingredients used in the production of these food parcels.
Also yesterday, we began work on our first dedicated NHS Nightingale Hospital pop-up store, at the NEC in Birmingham. We’ll provide NHS staff with on-site 24-hour access to the food and household products they need. Construction at the NEC started on Sunday and we aim to be open by the end of next week – so it’s all hands on deck. We’re in late-stage discussions with other Nightingale sites, and hope that this is the first of several pop-up Tesco stores that will help the NHS staff in those hospitals.
Regardless of the dividend, the future looks strong, people's habits and behaviour changing which is a boon for food and alcohol retailers.
Thanks Nelly, the divi is certainly hanging in the balance, sales numbers look like they will be around 20% up on last year at least. Have to wait for the RNS tomorrow for the final divi decision it seems.
GL
There’s a fine line at the moment, will be interesting to see which way they go with it
So they will sit on the cash or the directors will get a massive payout? My guess directors. Pi and tesco workers will suffer if divis not paid.