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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.
Exactly. That and the improved financial positioning of the business are the things to drive this north over the next few weeks.
Is surely now how much of investors SP will be reinvested on or around feb 26th? If you consider £0.51 has been given back to shareholder if 50% of that gets reinvested then we could see the share price at £2.70 by the end of next week / early March
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.
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 Sydney
If you pop into your online account then you will see the effect. Essentially divde by 19 and multiply by 15.
7890.
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?
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
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.
You are right and I agree with you working however I am going to have to pay tax on my dividend and in the end unless I invest the dividend to bring up my holding to what I had before consolidation and pay fees to do so I will remain with less shares.
sorry should be makes 1919 plus two bits donated to charity (even confuse myself!!!!!)
Thanks Lupo. Yes, I'm aware of the [potential] dividend tax implications - I pointed this out in my very first posting on this board (and in fact my first ever on "LSE"!) about a month ago. In my case I will be hit with the income tax on dividends but luckily only 7.5% (I'm recently retired) and only on about half the TSCO dividend (without this particular dividend I'd have been way below the £2,000 threshold this year because so many of my other dividends have been scrapped or reduced or deferred). It is certainly not a pretty picture for higher-rate taxpayers to be hit with 32.5% on this - in effect being taxed to stand still! Plus there's the loss of a fraction of a share in the consolidation if one didn't start with a multiple of 19 (or, in my case, dealing costs to adjust one's "pre" holding to get it to be a multiple of 19). Furthermore presumably Tesco have to pay fees for the admin work of effecting the consolidation etc - cash going out of the company.
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?
We may not have lost out as a result of this SD (yet).
But certainly haven’t gained anything. The Board have used a significant amount of money to correct problems of their making but rewarded shareholders with nothing. This Board will have a long way to go to retain the confidence of current and future shareholders in my opinion.
Boy,am i getting bored with this
Sorry Mike to butt in. I know your question is directed to bluerose. You make a valid point and I believe you are right if either your funds are in an ISA or your divi stays under £2000, including other divis you might receive this fiscal year. It is only If you end up paying a more than a third of your divi in tax, the argument changes.
bluerose,
I hope you will see my response in the spirit of trying to be helpful.
I don't see how you think we've lost out. To illustrate with an example.
Last Friday let's say you had 190 "old" Tesco shares. The market price was about £2-40.
Therefore you had £456.
Today you will have 150 "new" Tesco shares. The market price is about £2-45.
That's £367-50.
You also have a dividend of 50.93p to come (payable on 26 Feb) on the 190 old shares.
That's £96-76.
So now you have £464-26.
In what way do you think you've lost out?
Rgds, Mike.
“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.”
Lti - I am fully conversant with how dividends work but the point I made in my original post was clear. I answered atanasoff’s question and explained that the total value of is holding plus the special dividend resulted in a net gain but because the consolidation of shares recalculated the avg cost per share paid it shows as a loss on his portfolio even when the special dividend is reinvested. It’s just because of the way his portfolio is displayed by his provider using a average cost per share paid.
By all means get fed up with people who don’t know the simplest of basics mate but instead of just telling people they are stupid perhaps you could try to answer their question in a way that they understand. Thankfully atanasoff’ did understand my response.
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.
Not forgetting any fees for reinvesting. I had thought about buying Tesco shares from the "SD" but add about half a % investing fees and this deal seems even less of a "windfall"
I feel that we were short changed by management. Like it or not we have to pay tax on this dividend and ended up with less shares . If we had to add up the dividend to the share price as is we are still short of the price before consolidation . We lost out on both fronts
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.
RW
I did say what I am classing it as ,rather than what HMRC would say it is.
It is clearly not income derived from the operational business, it comes from an asset sale.
In the US, more often than not a special dividend would be used as a means to 'return capital' , but can be specified by the company as being a 'capital gain ' or 'income'.
Unfortunately Tesco have not set up a 'B' share scheme which would have been appropriate in this case, so as to give the investors a choice to have the proceeds as a return of capital.
So it is a conflict between what HMRC may see it as and what morally it really is.
I would contest the paying of income tax on what I see as not being income.
I certainly haven't paid income tax on similar returns from asset sales, but they may have (can't remember) all had a 'B' share schemes.
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.
Mpw: TBH I didn't do forums then, when NGrid did their SDplus consolidation in 2018 (?) (incidentally it was combined with a final dividend so had less financial promise than Tescos additional SD and separate final divi due in early July 21).
For what it worth to worried Tesco investors here, the N Grid consolidation didn't fully materialise in an "upheld" share price, and reduced holding stayed in negative territory to this day, though not overtly so ( about 12% down). But it has held up nicely compared to other shares during the covid of 2020. ( defensive share as is Tesco). So I shrugged and took the 4 to 5 % divi. So I' probably fair ahead on absolute £££ now. But NGrid is a utility- you accept that - accumulation of dividends rather than capital gain. Tesco is supposed to be much different. Dynamic and fighting it's way with the Lidls and Aldo's - and it succeeds. To wit its market share and increasing covid driven online sales. Aldi and Lidl do not do online which is a massive advantage for Tesco particularly in Covid times. So maybe Tesco v N Grid is not a comparable situation. The lesson for me was "always scrutinise SD/ consolidation very carefully. They are very different from stand alone special dividends based on exceptionally good profits.......