Tesco Share Price (TSCO)

Cracking start to the buyback yesterday !!

🤦

E04

''Can't understand why folk buy this''

??

the dividend yield is above the ftse average, and is more than twice covered by earnings. In addition, share buybacks for cancellation would help with any progression of the dividends paid per share.

I don't disagree, but at today's SP they're spending £1bn to take ~350m shares off the table over the course of a full year. I understand this will leave less slices of the pie on the market and pay dividends on but it just feels like a long winded way of achieving a SP gain.

Owl

"That being said it baffles me as to why they don't just plough this money into divs, 7bn shares for a company with the mcap of Tesco isn't exactly in confetti territory. That would drive the SP up dramatically."

The sp is up over 3% today simply on the commencement of a buyback that everyone knew about anyway.

That is pretty dramatic and silly dividends weren't required to shift it.

Yes, I'm aware this share drops in big chunks too but a business with Tesco's current market cap, a £1, billion buyback is huge ! Higher dividends will follow !

Can't understand why people with no shares in Tesco, spend time commenting on the share.

It suggests there's not much going on in their life.