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32p dividend vs. 50p fall in SP... What causes the SP fall to overshoot like this when shares go exDiv? Is it panic selling by investors unaware that the share has gone exDiv? Or maybe automatic selling/stop loss instructions? Or is it something else? As Tipsterchep said, it would have been worthwhile selling yesterday and buying back in today... But does it happen with all shares that go exDiv, the overshoot (i.e. share price fall exceeds the declaredc dividend)?
Mrss, that would be due to the special dividend & 15/19 share consolidation. Go to www.tescoplc.com/investors and read the information provided there. Alternatively, read some previous posts on this board. It's been extensively discussed over the last few months...
LTI, I’m in the same situation having topped up on Friday 12th. Settlement was on Tuesday 16th so maybe that’s why the SD was not paid on those shares even though they were included in my total holding when the 15/19 consolidation took place.
LTI, I use First Direct sharedealing so that’s HSBC. My S&S ISA is not yet updated ref the share consolidation. The ‘old’ shares are sat there but I can’t sell them - not that I’d want to do that at this time. I could buy some ‘new’ shares if I wanted to, I think. It’s strange that HSBC is so far behind with this. Like you, I topped up last Friday and I’m wondering if that’s got something to do with the delay...
I don’t believe that a private investor (or their accountant) will find themself in the position where they are able to choose how the Special Dividend is handled for tax purposes. That’s why, a few months ago, I Bed & ISA’d my TSCO holding. I even topped up my holding on Friday afternoon using some uninvested cash that was sat in the ISA.
I found the document from Ferguson (see link below) useful in understanding the special dividend & share consolidation. Based on 51p special dividend and 240p share price, the consolidation works out @ 63 new shares for every 80 old shares held (approx). DYOR, of course...
https://www.fergusonplc.com/content/dam/ferguson/corporate/investors_and_media/Shareholder-centre/AGM/2018/Ferguson%20plc%20Share%20Consolidation%20illustration%202018.pdf