Not so sure n the uk about the benefit of a 50 p dividend paired with a 50 p capital loss. For many one will be taxed at 7% and the other will offer no relief as there’s a small tax free allowance for dividends and a big one for capital gains. Currently a capital loss can be offset against future capital gains only but most people never reach that threshold. All this may change in tomorrow’s budget
so time to buy some more
I was looking to trim my Tesco holding when I rebalanced so came at a good time. I’ve used the dividend to build up another position in my portfolio instead of buying back in.
Tradings should back to the norm after the share consolidation and special divi. An exercise to benefit the Professionals. Add again under 220 before close yesterday. High at 226 today. Looking to profit at 230s.
Just curious, how do people feel about how the these shares have preformed since the consolidation of 19 shares to 15 and the 50p Dividend? I got out back in Feb so just wondered if people think it would have been better to have held on?
In my honest insight to this comment, last year I personally bought the US merchandise & food retailer Target(TGT) instead of any UK food retailer for two reasons;
- Target has implemented & growing a great online experience.
- The USA has 330 million citizens.
Target stock went from $90 to $220 since the pandemic. Considerably more well positioned than others. Plus it has a growing dividend.
I saw talk about Tesco stock and after looking, I could not find a reason for it to be a great 20 year investment. I would value Amazon over Tesco for future innovation in food delivery & services.
IMO, Tesco’s best days are behind it and does not look set for anything special this decade.
Though, that dividend is big.
Cheers for the reply. That all makes sense. See, I bought in because I started working for Tesco at the end of last year due to redundancy because of Covid. At the time it was my first foray into investing in shares and I just felt that on paper they seemed like a good long term bet at that time. Unfortunately it was what I now feel was a mistake due to the changes they made when they sold off the Asian side of the business. I guess it’s a learning experience as a newbie investor. So I’m just asking as part of my learning of what’s the best way to go about investing.
There are excellent insights on this forum for Passive ETF & Index investors and Individual Stock investors (& a mix of both).
All I can add is focus on your risk/reward and try to avoid being too much over 5% in an individual stock.
The rest is noise.
Thanks for the advice. The one thing I’ve learnt is that a lot of the forums and social media sites are full of fake people just trying to sell a dream and pump up most shares/Crypto’s just so they can dump with profit. It’s defined been an eye opener to see the extent people are going to confuse abs bewilder the casual or newer investor
I wouldn’t go that far. But they are certainly full of people who think that they know better, e.g. the dunning-kruger effect in action.
The best start is just passive investing with ETFs (also the best strategy overall), and when you know a little more maybe put some money into single stocks if you feel like it.
@Big-g thanks Gary. I am invested in Morrisons and was thinking the other day about moving my money into Tesco instead. Will keep an eye on the price now to see if Tesco can still make the planned cost savings and give a bigger choice to customers tat was planned with Carrefour.
The interesting comment for me was
But despite the failed alliance, Black said Carrefour and Tesco could eventually benefit from a formal merger, if executives were willing to take the plunge. “Their respective categories and geographies remain very complementary, especially given Tesco’s retrenchment over the past decade, with the British Isles remaining an efficient and substantial market of approaching 70 million shoppers,” he said.
With all the private equity hype around Morrison and Sainsburys the grocery sector is in focus again. I like Tesco and if they nail this can see this giant rise again.
Not a holder, but wonder if it will cause a major dip in SP? I know Tesco are in the process of share buy backs…
I’m having to do my actual shopping today with an real trolly … in person! Tesco have cancelled all click and collect orders - maybe home delivery too. I’d expect a short term knee jerk to this.
How they got in and and data they stole the key factors here. Tesco makes up 35% of the online grocery ordering market.