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Prag, Fully Agree the 'new' or fresh buyers shall see the benefit off the added 'pension' contributions.
Totally agree Rosewell.
The lack of knowledge is quite worrying and therefore causing a lot of unnecessary confusion.
The high vote percentage should tell all that investors will not be losing out, but then again they all probably took the time to read and understand what they were voting for.
Looking forward for a sustained increase from now, on the back of a much healthier company and with the strong trading we are now seeing.
All good, so good luck.
Prag',
That sounds good to me my mate!! :) :)
Nige
I’m going to offer up an opinion here - might be subject to a bit of debate...
Tesco have made significant improvements to balance sheet, pension deficit etc through the sale so I personally expect to see the current SP rise by 7-10% by mid March off the back of that. If say 50% of people reinvest their SD on 28/02, I would expect this to push the SP up a further 5% by say end of March. All of this against the backdrop of an improving Covid situation means that this will only go north. I personally think that the SD has not been all bad. You currently own the same percentage of the company (in a smaller number of shares) and have the option to buy more from 28/02 and in all likelihood at a preferential rate with minimal fees. Worst case, if you do nothing you’ll end up a good 15% up over the coming months anyway as the market understands and appropriately positions the SP???
1308
''why are people not accepting that this SD has been of NO benefit to the shareholders? ;;
ffs when is this nonsense going to end.
The benefit to shareholders was when the Asian assets were sold and announced what was to become of the proceeds. The benefit has been baked into the market cap of Tesco since.
Anyone buying Friday expecting to be given 51p of money that did not already belong to them, would be amongst the most stupid people around.
LTI
I totally agree [ choke :-) ]. I have lived with this special dividend for almost a year and have explained to colleagues directly and on this and other boards. I can honestly say that most of my colleagues have a greater understanding of this investment than many of the posters on this board.
Tig
''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
PLEASE stop this nonsense.
Did anyone buying recently really expect to be given 51p per share from what they did not own.
Investors ALREADY owned the 51p sitting on the Tesco balance sheet.
The 51p will no longer be on their balance sheet but in your back pocket.
Are we going to get every time an xd date comes along
''''All in all we haven't lost out but we haven't gained therefore it's been a complete waste of time ''
Am I to expect a similar message in MAY?
I am astonished with the volume of inaccurate and misunderstood posts on this board. Absolutely astonished.
The initial RNS was published on 9th March 2020, almost ONE YEAR AGO. It has been discussed most days since then.
The prospectus contained all of the information then in order for you to read, digest, understand. Huge numbers of posters in the last few days are acting as if this has come out of the blue. Absolutely everything you needed to know was in the RNS and you couldn't be bothered to look and now you are complaining.
And you call yourself investors? Really!
241 minus 51 equals 190
Think most understand how dividends work. The whole idea sold was we would get a gain from the sale. In reality, no such gain is apparent. Where has the money gone?
Hi again Pantherm100,
Sorry I've now lost track of which of your posts I'm replying to!
I once saw it written:-
There are companies run *by* their management, and there are companies run *for* their management.
I'm sure everyone will have their own opinion here...
All the best, Mike.
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.
Typo error. for O Neil. Read" consolidation. Lolol
Chris1308
Just to clarify matters, you do not pay income tax on this special dividend. You pay Dividend Tax on any dividend payment over the £2,000 limit and then, only if the shares are not held in a tax wrapper such as an ISA or SIPP. If you are a basic rate payer then you will be paying 7.5% Dividend Tax on the excess.
There won't be many who will pay tax on the dividend.
Hargreaves Tesco data factsheet is showing a circa 0.53p rise at 22% on Fridays close! Seems they are working on a theoretical 1.88 pre consolidation assumption. The brokers seem to be treating it differently according to how they see the SD/ O'Neil issue. Not that it matters. It's all the same in the end lol
Pantherm100, you *not* been burned.
Did you read Tesco's RNS, as I suggested in an answer to another of your posts, where it makes it absolutely clear that the 50.93p dividend is on the number of *old* shares, not the number of new shares?
Mike.
Thanks everyone for your views particularly MikeM14
Whatever the outcome I fail to understand the logic of this process adopted by the Tesco Board. Very disappointed.
Im with Tigra on this .... why are people not accepting that this SD has been of NO benefit to the shareholders?
just as Lloyds and the banks became an ATM for the false claimers , this SD has been an event for TSCO to enrich the government coffers. ... the dividend is included as income and subject to Income Tax when you complete your Self Assessment ( allowing for the miserly £2K which used to be £4K not too long back) .
It took me ages to accept that I am not going to be a penny better off , in fact shareholders have again been cruxified by the BoD .... a repayment of capital has been given to us as income . So I'm an ex-TSCO shareholder until the price falls back to the 220 range which it probably will.
GLA
chris
£3 + ??? Dream on. The only consolation is I’ve been burned more than you.
tom1,
I think you're absolutely right that if you automatically reinvest the dividend in more shares the price will probably be slightly higher because of all the buying at the same time. However, the broker charge/commission, if there is one at all, will be very small. Whereas if you took the dividend as cash, and used it to buy more shares at a time of your choosing (eg when the share price is lower), the broker charge would be higher. A bit of "swings and roundabouts"!
Regards, Mike.
Thanks Pmoran - that is the way I see it.
I had 1462 shares at 215p = £3143.30 so this showed a healthy profit around £395
I now have 1154 shares. That averages 272p.
"Loss" is 57p per share.
The market should be reflecting the lower number of shares in circulation but the current price is 243.45p so 28.55p "down".
I get a special divi that, lest we forget was not meant to impact the share price, on the 26th Feb of 50p so £731. This means the nett figure is +£6.53. before tax. After tax it will be negative as it is being paid as a divi. The problem is that I will still be showing a greater loss on the dashboard because even if I put the divi in (old profit+divi+£6) I will still be down as it won't average down enough.
In other words the special divi from the sale of a large chunk of the business has had a negative effect on me.
I am hoping that the share price goes up to reflect the smaller number of shares. £3+ should be in order.
Tzap
I was migrated to II from Share Centre last week. So far nothing but trouble and irritation. Today I have the same situation as you - and unable to trade. I'm seriously unimpressed with II. How long have you been with them?
Agreed Trojan. Now there are 7,731,707,820 Tesco shares in total, whereas last week there were well over 9 billion.
These "new" shares are "bigger" than the old ones -"par value" (aka nominal value?) 6.3333p, whereas the old ones were 5p.
Mike.
And on the 26th you can reinvest it.
Hi Pantherm100,
If you read Tesco's RNS (Regulatory News Service) announcement of 25 January at 07:12, "Notice of General Meeting", it should all be clear in there. Press the "RNS" button near the top of the screen, and all their announcements are there, in date order.
I hope that helps,
Mike.