Tesco Share Discussion Threads

[supercity] 08/4/2020 10:04

A lot can happen between the sale being completed and the special divi being paid - At this moment they are saying it will be paid but that could easily change one two three months from now

[deanforester] 08/4/2020 09:59

Read the RNS:

On 9 March 2020, the Group announced the proposed sale of Tesco Thailand and Tesco Malaysia to a combination of CP Group entities for net cash proceeds of $10.3 billion (equivalent to £8.0 billion) before tax and other transaction costs. The transaction is subject to shareholder and customary regulatory approvals and is expected to complete during the second half of calendar year 2020. Following completion of the disposal, the Board intends to return c.£5.0 billion to shareholders via a special dividend with associated share consolidation, and reduce indebtedness through a £2.5 billion pension contribution that is expected to significantly reduce the prospect of having to make further pension deficit contributions in the future.,/i.

[bigtune888] 08/4/2020 09:48

when will the £5bn div of Thai and Malaysian operation sale be paid?

I bought £18k of shs just below 213p.

They were not allowing PI to buy sub 210p.

Although I took 16.7K ctd average 212.80p and dumped at 218p. I wanted a quick £500-£800 scalp. did not get greedy.

[nathdani] 08/4/2020 09:45

Like I said Tesco just cant take the money during this crisis only half the tills normally open and stores open on shorter opening hours its obvious really.

[hazl] 08/4/2020 09:41

People have to eat.

Conversely, Tesco has said people are not panic buying as much as usual, so presumably the extra staff requirement will tail off...so costs should lessen again.

This strange situation we see ourselves in is temporary,hopefully, but I repeat,people will still need to eat .

[the oak tree] 08/4/2020 09:34

Think Imastu post above sums up my thoughts exactly, so can only copy and paste to highlight it!

"I thought it quite wise to state that the benefits of the business rates relief matched (funny that...) the increased staff and other operating costs of 'feeding the nation.'

Too much profit = upset the meeejah and MPs (and the previous poster), too little profit = upset the stock market. Sensible approach to minimise 'outrage' in tabloid Britain."

Yes a bit of PR there.......

[alphorn] 08/4/2020 09:30

Pleased to have balanced my exposure yesterday. Results look fine in the circumstances but remain very pessimistic about the domestic economy. (Also pleased that they maintained a dividend payout - good move).

[grupo guitarlumber] 08/4/2020 09:26

Sean Farrell
Sharecast News
08 Apr, 2020 07:39 08 Apr, 2020 07:39
Tesco ups final dividend amid Covid-19 sales surge
cbtescosupermarket short
Tesco
217.00
09:08:25 08/04/20
-4.09%
-7.20

Tesco increased its final dividend as the supermarket group reported a 13.5% increase in annual underlying operating profit.
FTSE 100
5,654.45
09:08:20 08/04/20
-0.88%
-50.00
FTSE 350
3,160.49
09:08:20 08/04/20
-0.65%
-20.52
FTSE All-Share
3,121.57
09:08:20 08/04/20
-0.63%
-19.71

The company proposed a final dividend of 6.5p a share, up from 4.10p a share a year earlier. The final dividend takes the total payout for 2019 to 9.15p a share – an increase of 58.6%.

Operating profit before exceptional items and amortisation for the year to the end of February rose to £2.96bn from £2.61bn as sales dipped 0.7% to £56.5bn. Pretax profit fell 18.7% to £1.32bn.

Tesco's board faced calls from shareholders to pay a final dividend even though many other companies are suspending payouts to conserve cash in the Covid-19 crisis. Tesco said its annual dividend was 50% of earnings and that it intended to maintain that ratio in future.

Tesco said: "Reflecting the strength of our performance last year and given our robust liquidity and balance sheet, we propose to pay a final dividend of 6.50 pence per ordinary share."

Britain's biggest retailer has had a sales boom during the coronavirus crisis as customers have emptied shelves in panic buying sprees. Tesco has recruited thousands of extra staff to cope with demand and employees taking time off because of the virus. The company estimated the additional cost at between £650m and £925m.

Dave Lewis, Tesco's chief executive, said: "In this time of crisis we have focused on four things: food for all, safety for everyone, supporting our colleagues and supporting our communities. Initial panic buying has subsided and service levels are returning to normal. There are significant extra costs in feeding the nation at the moment but these are partially offset by the UK business rates relief."

[hazl] 08/4/2020 09:24

Good responses.

[hazl] 08/4/2020 09:23

It's likely somebody short who hasn't any other ammunition.

[capercaillie] 08/4/2020 09:20

Imatsu - I have to agree. They have a difficult dance between showing profit and profiteering.

[peteret] 08/4/2020 09:18

All the other companies that have cancelled the dividend have kept it for themselves not paid it to the NHS or shareholders who are many pensioners who rely on it as their income.Morrisons have cancelled their dividend and will get the rate relief as well.So they are being worse than tesco as not sharing the profits yet their shares went up.

[jgp212] 08/4/2020 09:16

When is the divi paid?tia

[philanderer] 08/4/2020 09:14

Very pleased with that dividend. I've only get 7/31 that pay a dividend now.

[imastu pidgitaswell] 08/4/2020 08:53

I thought it quite wise to state that the benefits of the business rates relief matched (funny that...) the increased staff and other operating costs of 'feeding the nation.'

Too much profit = upset the meeejah and MPs (and the previous poster), too little profit = upset the stock market. Sensible approach to minimise 'outrage' in tabloid Britain.

[tyranosaurus] 08/4/2020 08:42

Tesco paying 6.5p dividend and going to return £5bn to shareholders.

Why do they need £700m business rates holiday ??????
This money should have gone to the NHS

THE GOVERNMENT IS BASICALLY SAYING SOD THE NHS, LET PEOPLE DIE. WE MUST LOOK AFTER THE TESCO SHAREHOLDERS.

[hazl] 08/4/2020 08:29

The board declared a final dividend of 6.50 pence, for a total yearly payout of 9.15 pence, compared with 5.77 pence a year earlier.

"Covid-19 is having a material impact on the operations of our business and we are incurring significant additional costs, particularly in payroll as we recruit additional colleagues to meet demand," the grocer said.

However, it said it is likely to offset additional headwinds to cost, thanks to an increase in food volumes.

Tesco confirmed its plan of returning GBP5.00 billion to shareholders by way of special dividend and to make a one-off GBP2.50 billion pension contribution to reduce indebtedness.

[hazl] 08/4/2020 08:21

..just a blip on some selling on results.
I Expect it to turn up through the day.

[khu1] 08/4/2020 08:20

Tesco is making profit, why is the share dropping ?

[melody9999] 08/4/2020 08:16

£5000M div. According to Stockopedia 9764M shares in issue. 51.2p divi

[andyview] 08/4/2020 08:16

Strange open, ive added.

Gla

[filmster] 08/4/2020 08:05

Yeah 5bn div doesn't make 50p div lol. Far less

[younasm] 08/4/2020 08:04

50p dividend?? I haven't read the results fully, but there is a final dividend of 9-ish pence??

[fraser038] 08/4/2020 08:04

Unreal to be opening down this morning. Total manipulation.