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''Now if July div stays the same, ie 7p''
Dividend amounts are determined by profitability and dividend policy. What ever money is available from profits under a dividend policy will be distributed to shareholders. The amount per share will be determined by money available divided by the number of shares.
Spindler
LOL
I meant a dealing charge of £1.50!
To put 1k or so into a fund I'd like to buy anyway
As opposed to about £15 if I bought a stock
Take care of the pennies.....
And personally I would just love to have been in the room when the SD decision was made. To explain to the city bigwigs that Special Dividend in the accepted meaning within the confines of the english language means a Dividend albeit a special one. And that is how investors will perceive it. If you do it alongside a consolidation it isn;t a dividend special or not ! It's a return of capital via a complicated construct. These A hats don;t know their A from their elbow very often
My Tesco shares were 215p each. My understanding was that in the consolidation the shares would be reduced 19 to 15. What I didn't realise is that the "new" shares would be "sold" to me at the closing market capitalisation rate meaning that my unit cost is now 273p (according to HL). This means on current share price I am 10% under water. I realise we have the Divi to come (not showing yet in HL) but I feel a bit cheated. My own fault for not really knowing what would happen but leaves a sour taste for this LTHer.
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''believe they would receive a cash benefit''
the benefit was in the market cap of Tesco, against a general market drop. The asset benefit could have been unlocked at any time by an investor prior to it's handing over.
The SD that isn;t an SD would be salt in the wound. But I get what you say look forward but for them must be hard to
In my situation I have made too much this year in stock sale gains, so I will be paying CGT. However I have been way under my dividend tax threshold.
So if I bought Friday then sold today, I move the losses from one pot to the other, reducing the tax paid on investment, but increasing dividends tax free. As it is, I am not planning to just dump all my TSCO shares for a loss, but the point still stands :) Just an alternative way to look at it.
To be fair LTI those who had a buy in price north of 300p or 400p and got mugged due to management activity well outside of what was to be expected and in blatant contravention of Stock Exchange rules are entitled to feel like another kick in the teeth(I'm not one of them). As someone said on this board or another how hard was it for Lewis to right the cheques for fines etc not coming out of his pocket. I do think he's done a sterling job that aside but this was not the right move and i had invested in a FTSE 100 company and it cost me I would want redress or at least see the perpertrators held to account financially or legally or both.
In the end I phoned EQi and they suggested clearing the browser cache and if that didnt work, then to send some screen prints in. The lady kindly offered a trade over the phone but at online prices, so I got my foot in the door this morning.... sounds like teething problems at II as well then.... good luck with sorting that out.
Fully agree and no issue with this reasoning. Maybe the phrase "special dividend" caused many to believe they would receive a cash benefit, but in reality at very best its a marginal gain. In my opinion, a marginal gain on such recent "income" for TSCO is poor. Looking at the BB, it seems there are more who arent happy than are happy. Thats either a mass misunderstanding of the program, or poor communication as to its actual, final impact.... take your pick. However you slice it, many believed the phrase special dividend would deliver , ooops a special dividend but its has in reality delivered a claw back program. Now if July div stays the same, ie 7p, afain we all actually get much lower here also as we hold lower stock numbers.If nothing chnaged, I would have expected 2550 x 7p = £178 divi, if divi remains uncganhed then its down to £140, so if and its a major if at the moment, I hold until July there needs to be a bigger dividend. Baed on what I am seeing at the moment, I dont believe that will be the case. To stand still, the July divi would need to be 9p, thats a dividend increase of 28.5%....... not at all likely!! Maybe I am one of the numpties, but a numpty who knows the numbers. Stay well all....
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Great post...
Special Divi
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''will see me depart sooner rather than later''
Why do people whinge about their investments, when there is a solution.
Good to see you have made a decision
https://www.youtube.com/watch?v=B5jVJYNm9Tc
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''I dont think this has been very "special" at all''
When are numbskulls going to get it into their heads.
The Asian asset sale and what to do with it has supported the share price against a general market downturn from the global pandemic. Without the sale, the return and the pension contribution, the Tesco share price would have been a lot lower with the rest of the market .
Shareholders have therefore benefited over this period of time and could have cashed out at any time.
Interactive Investor have completely removed Tesco from my portfolio. In the seven days since the move over from The Share Centre, all they've done is irritate me. Still not even able to link a debit card to the account. After this, I think it may well be 'cheerio'... Anyone else a Share Centre refugee?
Interactive Investor have completely removed Tesco from my portfolio. In the seven days since the move over from The Share Centre, all they've done is irritate me. Still not even able to link a debit card to the account. After this, I think it may well be 'cheerio'... Anyone else a Share Centre refugee?
With the number of shares reduced, surely the dividend will increase? The amount of money for the dividend will be the same, it is just divided in less shares.
Friday = 2550 x 240p = £6120, Monday = 2013 x 2.44 = £4910 + 1300 spec div = £6210 difference is £90. I dont think this has been very "special" at all. The BoD must know that there will be a groundswell of disenchanted shareholders who originally thought "great, at last Tesco are doing somethinmg for their shareholders after all the C19 trading profits and sale of Asian businesses" and who rightly believed they would share in the spoils. However it just seems that the BoD have spoilt the program. This does not encourage me to be a LTH, I think its slight of hand by the BoD and hence will see me depart sooner rather than later, as soon as I have found a more worthwhile home for my £6k. Here's one VERY disappointed shareholder who originally believed he was going to get some for of return on his investment with the special dividend program, but didnt. See you later Tesco, off to Asda for my shopping after this deflation.....
buy a fund for 1.50 are you taking the mickey ? You are aren't you ?
That is why I purchased on Friday with the recent fall in price. The possibility of a lot of money being reinvested into Tesco
I'm currently sitting on a £26 profit from an original 2k holding in my ISA.... minus a £12 charge if I reinvest it straight away (so I won't I will transfer it to my SIPP and buy a fund for £1.50)
I do suspect Tesco shares will drift up toward £2.50 now though as the market digests the 2.5bn pension debt removal and more concentrated shares.
D ividend R e I nvestment P lan
If you have a mandate in place for DRIP , will the special dividend still be returned in cash to you, or will it be used to buy more shares in the Company ?
When the dust has settled and investors look at their Tesco balance sheet, I think they will find that they have made a net loss
if they have a taxable Special Dividend, and a small gain, at best, if they do not pay tax.
Try www.shareview/dealings instead.
This is working.