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Good thank you. For a minute I thought I'd lost over £7000!??
Thanks Ardvark , but you can select to reinvest the dividend straight into tesco shares like any dividend , or take in cash i suppose you can choose before 26 th , will make decision based on share price nearer time
I like to look at it like this- every Tesco share today represents a higher percentage of the company than it did on Friday.
I had the same with cairn energy , it took to the next day for the new share listing to show on my ISA account
You will get the price the market is trading at when you purchase. Not backdated. If you buy on the 26th you will get that day's price at that time.
I calculated my dividend on Friday and bought the equivalent number of shares at 2.37 but have a longer-term view than many here.
I had 11436 shares in an investment account now 9028 shares,(so thats makes sense). 3044 shares in stocks and shares isa , still reading 3044, and not 2403? but the value on the ISA is £0! Both with Eqi.
You would be buying at whatever the relevant share price is on the 26th or whatever day you to choose to buy from that date . The special dividend is paid just like any other as a cash some into your account . Have recently been through the same procedure with cairn energy who had a share consolidation and special dividend
The dividend was paid at close on Friday , so has to be on old holding surely
Question , if you reinvest special dividend in shares i, do you buy at the price close Friday , or on the 26 th ? , Also if the majority do reinvest this should in theory result in a price rise should it not due to large demand , any thoughts , thanks
Hi Mike
I had 6250 old shares which translates to 4934 new. My calculations are based on 51p x new (not old share quantity). That would make a difference. Are you sure this is correct because my understanding was clearly different. If so how do you know?
Pantherm100,
You don't receive the dividend until 26 February. Are you still "down" once you take that into account? Obviously I don't know how many "old" shares you owned, but the dividend will be that number times the 50.93p.
Mike.
Interactive investor has incorrect average price and therefore stating I am 20% down also no trade history for Tesco. I've reported it.
Longtime there is a cost as far as the share portfolio on his HL screen is concerned.
Atanasoff purchased shares at £2.15. To keep the maths simple let’s say he purchased 380 shares at £2.15 so the cost was £817 or average cost of £2,15 per share.
After consolidation he has 300 shares so his average cost per share is £2.72 (£817/399 shares)
So with the share price at £2.40 he will be showing a loss of 10% £2.72 avg price per share vs share price of £2.40.
In terms of total value of his holding he now has 300 shares at £2.40 each so it’s £720 a loss of £97:versus his original purchase of £817.
The special dividend will be his original 380 shares x 50p so he will receive £190 which means he hasn’t lost out on the deal but his portfolio will still show it as a 10% loss. If he spends the special dividend on shares he will get another 79 shares meaning he has spent £1007 (£817+£190) on his now 379 shares giving him an average share price of £2.65 which will still show as a loss on a per share purchased basis on his portfolio against the £2.72.
Thanks for the response Mike
But whilst I still own the same fraction of Tesco it is worth less. Even with the 51p / share ( as of today) I’m worse off than last week. My original view remains.
Logged onto Eqi this morning. My investment account value is down and there is no balance in my stocks and shares isa but its reading the share balance ok? I thought the shares and therefore total value would decrease and then the "dividend" would bring the value back up on 26th Feb. Why is my ISA empty of value? There are 3044 shares in it....
Pantherm100,
How do you work that out?
Mike.
It’s OK saying don’t worry. Everyone is worse off.
Pantherm100,
What you are missing is the fact that (if invested) you will shortly have a very large dividend (cash) in your pocket. They have not "pocketed the sale proceeds themselves", but they are passing a majority of them directly to shareholders via this special dividend. The remainder have been used for corporate purposes such as reducing the deficit in the pension fund. The consolidation of the shares from 19 to 15 is arguably something of a red herring; you will still "own" the same fraction of Tesco as you did before, because the *total* number of Tesco shares reduces (and in fact has now reduced) in the same proportion.
Rgds, Mike.
As a new investor / speculator I can’t believe the Tesco Board have persuaded myself and presumably institutions to take up the special offer of buy 2, pay for 3 deal. They’ve simply given with one hand and taken with the other whilst pocketing the sale proceeds themselves. Or am I missing something?
There is no cost.
Instead of you having z amount of shares at about 190p you have y amount of shares at 240p.
190 x Z being equal to 240 x Y
s
'' those who had a buy in price north of 300p ''
An investor should take responsibility for their decision to invest in the stock market, rather than continual whinging.
Years ago I paid 340p for a tranche of Tesco shares
The same investors had plenty of opportunity to purchase as I did in the 140's
Can someone explain what is happening to Tesco shares? It does not allow to sell.
Fully understand some investors frustration if they bought circa 240 but I also think many are taking short-term views. Assuming the yield is the same as last year then the division will be into less number of shares. Additionally what was discussed and passed at last weeks GM was an option to buy their own shares.
The sp has been held in a tight channel for the last few weeks to facilitate this SD so private investors should relax and either move on stay invested and hopefully enjoy a CG and their well covered dividend.
What is the consolidation ratio?
Regarding the move from Share, to ii Investors, not impressed so far. Had lots of problems getting the new account up & running. Still have to get ‘Regular Investment’ set up, not as easy as we were led to believe.
As regards Tesco’s, share price all over the place, this morning. Presumably, still settling down. Am waiting for the Special Dividend to be received, then re-invested into the new shares, so I will then know exactly where I stand with the new shares, against what Shares I used to have. Will hang in there for the present, probably topping up, to see what the next dividend will be in May. Get the feeling that the new share price will be volatile for a while. Guess everyone’s position, will be whether they are in for a quick profit, if possible, or believe in Tesco’s in the longer term.