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Equilibrium_TBC,
Where are you seeing £3 in the last year? Using the Charts button above, with the timescale set at 2 years, the highest it's been in the last year or so is about £2-58 in Dec 2019 / Jan 2020. That was a result of a dramatic rise up which was probably the result of their RNS announcement of 9 Dec 2019 "Statement regarding Asia". That's probably the bulk of your 51p added value. And those prices were, of course, before the effects the COVID-19 pandemic had on the markets starting a couple of months later.
Mike.
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.
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.
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.
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.
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.
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.
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.
jonny,
Your price for Monday of £3-04 doesn't reflect the fact that the "old" shares should have gone "ex dividend" by then (and thence fallen to about £1-89 as a theoretical price). Whilst the special dividend event and the consolidation event are said to be happening at the same time, my belief was that the 50.93p per share dividend is being paid on the "old" shares, not the "new" shares. The old and the new shares are different "classes", if that's the right word, with different "par values" (one being 5p and one being 6.333333p). The £1-89, multiplied by (19/15), gets you back to about £2-40 per New share - everything else being equal. Of course, all this doesn't happen in a vacuum; as another commenter has said, the price we see on Monday is then also subject to the vagaries of "the market".
If I have got this wrong, I stand to be corrected (and probably out of pocket...) on Monday morning when we see the price of the "new" shares.
ATB,
Mike.
Nigel,
Finally, this should explain it all:-
https://www.gov.uk/government/publications/shares-and-capital-gains-tax-hs284-self-assessment-helpsheet/hs284-shares-and-capital-gains-tax-2020
I'll stop now before anyone reminds me - rightly - that this might be going a bit off-topic.
ATB, Mike.
Nigel,
This is the thing about averaging the cost of the shares in one company if you bought them in different tranches at different prices:-
https://www.gov.uk/tax-sell-shares/same-company
Of course, when you work out the buying cost, make sure you include the broker fee (if any), Stamp Duty (usually 0.5% added to the price of the shares), etc. And similarly, make sure the proceeds stated have the broker fee deducted. (So if you sell 100 shares at £2-40 and the broker fee is £9, the "proceeds" figure to use is £231).
Mike.
Nigel,
This should be a start:-
https://www.gov.uk/capital-gains-tax/losses
This is arguably going a bit "off topic" for a Tesco board, but relevant if for example people are baling out from Tesco shares at a loss.
Unless they've changed it again, how it worked when I last did a capital loss was you pool all your holdings of the same type of share (eg Tesco) into a pool of shares called a "Section 104 holding", and they're all treated as having the same average buying price regardless of whether you bought them in different tranches at different dates at different prices. This system came in in about 2008. Before that, it worked on a "first in, first out" (or maybe it was "first in, last out"?) basis.
If I find anything else, I'll post it.
Mike.
Nige,
I'll look on the HMRC website and post a link - if this LSE site allows me to do that. Unfortunately my broker didn't provide anything to me to certify any losses I made on share sales - I had to provide my own spreadsheets to HMRC, but they seemed to be happy with what I sent them. Certainly though it's worth waiting until April to see if your broker does provide you with a statement or something.
Mike.
Hi again Nige,
Re loss on Lloyds shares, unfortunately you can't offset such a loss against dividend income. You can only use it against capital gains elsewhere, and probably only against *the same kind of* capital gains (so gains on share sales, but not, for example, gains on a house sale). It's important to "register" the loss with HMRC as soon as practicable, and I think you can do this whether or not you're doing self-assessment. You can't, to my knowledge, get an immediate refund in the form of cash back, so it's a bit like a credit note.
Once you've registered the loss, and which year it occurred in, you can keep carrying it forward several years (I don't know off hand how many), which is great if you make big gains on shares in the future (but this is getting less and less likely by the way things are going!).
Cheers,
Mike.
Thanks Longtime investor.
I agree with everything you say in this and subsequent posts (I'm still going through all the recent ones!) about capital returns that should *not* be treated as income.
Re Vodafone, not to get off topic on this TSCO board but if it's the same one as mine, it was a big one when they sold off Verizon (or part of Verizon JV). From memory, without going back to my old notes at the time, they did that with "A" shares, "B" shares etc, but I may be thinking of something else.
Rgds,
Mike.
Thanks Nige, I'm glad it was of some help.
We all now await Monday morning with bated breath (and hope it doesn't prove us *all* wrong!), and look forward to receiving the dividend on the 26th (hopefully).
I'm going to "wind my neck in" now and sign off.
All the best,
Mike.
Thanks ECRyder, I appreciate that, but that's why I used the word "if". Having read many of the comments on here and seen the various confusion, this was just my attempt to break the whole thing into easy-to-understand stages to make things simple to understand. In reality, in this case, there is no "ex-dividend but pre-consolidation" stage. If my posting has caused more confusion, that's the exact opposite of its intention and I'm sorry for that.
Regards,
Mike.