Thank you for this bit of info
Well it’s up to you if you want to buy anymore, only you can answer that. But in terms of the dividend to get this you just need the amount of shares you want and hold this through past the 15th of Feb and the payment is on the 26th (give or take a few days after to get to your account)
What about free shares when do they come out please
If you’re talking about the ones in your account from Freetrade? they are released every Wednesday!
Thanks appreciated for the advice
No worries at all mate
Do I get free shares with Tesco this year plus a dividend ifso when please
The free shares from Freetrade are completely random so it could be anyone worth between £3-200 I think! but the dividend is paid on the 26th of Feb so just need to hold them through the 15th to getting paid then you can do what you want with them
Thanks
Do Tesco’s pay out more than once a year I know about the one in February but is there another one this year
Sorry I’m not truly well versed on dividends. So you could buy shares on the 14th feb, then sell them on the 15th and qualify for the dividend?
Yes. You need to hold them on the ex date. So selling on the ex date is fine.
1 Like
Yes, but unless the share price increases on the day and before you sell, you will not gain anything.
The reason is that as soon as you qualify for the dividend, the share price falls by the value of the dividend. So you would just be selling at the previous price of the share minus the dividend yet to be received.
Bear in mind there ma be a dip in the Tesco share price due to the fire and rehire plan they are pursuing for some warehouse staff.
1 Like
But with the share consolidation they’re doing to prevent the share price going down that won’t happen will it?
The price per share might stay quite stable but the value of your investments will still drop.
I don’t quite know the Tesco values, so I will put you an example with simpler numbers.
Fictitous example:
Lets say you buy 10 shares in company XYZ at 2 pounds a share on the 1st of December.
You have therefore invested 20 pounds (GBP = Great Britain Pound).
Now, lets say XYZ decided to pay a dividend of 1 pound and that it will also consolidate the share with 2 current shares becoming just 1 share. The ex-date and the consolidation date and time are the same, lets just say that is happens at a time when the market is closed. 1 AM on the 3rd of December for example. (In practice the ex-date is likely to be market opening on a certain date, which just means the day before)
So, at market closure on the next day, the 2nd of December price has not moved and you still own 10 shares, worth 2 pounds a share.
Then during the night, company XYZ “pays” (the ex-date is not actually the pay day, but in practical terms, in terms of being elegible for the dividend it is) the 1 GBP dividend so you receive 10 pounds in your bank account (or broker, like FT or Trading212).
At the same time, the 1 GBP value is subtracted from the last share price of 2 GBP, so the “new” share price is 1 GBP and you now own 10 XYZ shares at 1 GBP (but you have the 10 GBP divided in your bank).
Inmediately after this, the company executes the share consolidation of 2 shares becoming 1 share, as such, your 10 XYZ shares at 1 GBP, become 5 shares of company XYZ at 2 GBP.
So now, at market open on the 3rd of December, instead of having the original case of 10 shares at 2 GBP you now have 5 shares worth 2 GBP each, which in total are worth 10 GBP and 10 GBP in your bank account. This still equals your initial investment of 20 pounds, but instead of having 20 pounds in shares you now have 10 pounds in shares and 10 pounds in your bank account and half the number of shares, as instead of owning 10 XYZ share you now only own 5.
So, as you can see, unless market demand increases the share price between when you buy and when you sell, dividends and share consolidations do not change anything. They don’t make you win money at least. What they can do is trigger dividend taxes, if your investment is not in an ISA and you receive more yearly dividends than the exempt limit.
Note: Assuming all these days are working days.
2 Likes
Firing people is generally good for the share price. Generally any form of cost reduction. But I doubt this will have much of an impact, it’s just not important enough.
It’s forcing those staff onto cheaper contracts, so yes it’s designed to cut costs, but if their warehouse staff strike it might have an effect.
For those that are interested in the literature
1 Like