Thank you for clearing that up guys.
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Hi people, new here!
I had 209 tesco shares worth Ā£2.44 then after colsolidation 165 shares which should be worth Ā£3.08 which should workout to over Ā£500 but is only showing Ā£400 which works out as a Ā£100 loss???
Please can you shed some light on this please?
The share price is the share price. This wouldnāt change just because you have less shares now. You will be getting a larger pay out dividend at the end of the month to compensate you. For your amout of shares its likely to be Ā£106.44
I sold them at Ā£2.47 last week as fund with supermarkets will use the divi to buy more of MRW and SBRY. Will buy back when the price is lower.
So just to ask the rather pointed and obvious question but, whatās in it for us?
My understanding is that theyāve taken nearly a quarter of my Tesco shares, left part of my portfolio in the red and at sometime of their choosing will issue us with a cheque that barely covers the loses marketed somewhat unconvincingly as āa dividendā
Are we supposed to profit from this somehow? Or have I just read the situation wrong and weāre being subtly shafted?
Really appreciate those in the know stepping in to educate the rest of us btw. Legends 
I feel your pain cos Iām in same situation. Iāve decided to dump Tesco once I receive my dividend.
Also, is Freetrade going to ācorrectā the reported loss in the app at some point? Or do we just have to look at the not-so-pretty -20% for the foreseeable?
The whole situation just feels borderline criminal to me: āWeāre going to take these shares away from you now without your consent and here, look, hereās a cheque for your own money back, itās nearly the same amount, arenāt you luckyā
Jokers.
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How is that āreturning Ā£4.99 Billion to the shareholders?ā
If anyone has the answer, really, Iād like to know.
Do we have to keep the Tesco shares until the dividend is in our accounts? Or as the split is done, can we sell them now and still get the dividend?
As long as you held them on the ex-dividend date.
Thatās the value of the new shares before the dividend. When a company pays a dividend it effectively loses the value of the dividend because it no longer has that money.
If you give Ā£20 to your friend your net worth goes down by Ā£20. Itās the same for dividends.
After selling their Asian business Tesco was sitting on a huge pile of cash which it couldnāt use. Unused cash loses value to inflation over time so itās about the same as you having cash and keeping it in a savings account earning 0% interest. Itās better for them to return the cash to you so that you can invest it somewhere it can earn value.
No. The value shown in your portfolio reflects the reduction in market cap of the company without considering the dividend. The dividend that you receive is in addition to (and taxed separately from) the share value.
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Appreciate you taking the time to explain, but itās still not clear. Telling me that my proverbial Ā£20 is now worth Ā£15 and sending me a cheque for Ā£5 just feels like a waste of everybodies time.
Is the idea that we buy our shares back and wait for the profits to somehow materialise?
It would make sense if the value of the shares dropped in line with the payout, but they have somehow reduced the number of shares that I own.
I feel like Iāve been scammed.
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How are they able to take 19 shares and replace them with 15 shares of equal value?
What is the justification for that?
Iām being penalised instead of rewarded.
Not at all impressed.
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Thanks for the information.
I didnāt realise it worked out like that!
Now I know for future stocks
It is worth pointing out that they did have your consent. There was a vote, and the vote passed
- 99.88% voted for the special dividend
- 99.80% voted for the share consolidation
Thats how stocks that pay a dividend work.
Tesco decided to conduct a share consolidation so that the share price would remain roughly the same instead of dropping 50p. The result of this is no change in your % ownership of Tesco. Since all shares were consolidated everyones shares were reduced by the same amount. I think you just might be misunderstanding what a consolidation does. Your stake in Tesco is the same to day as it was last week.
I think youād find it worthwhile reading through the investor page on these actions https://www.tescoplc.com/investors/shareholder-centre/shareholder-meetings/
hope this helps
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X-div last Friday, you will get the divi on 26/02. You can dump them after x-d date.
Does any one know why the shares have slumped 23% ?
Thanks,
CJ.
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Off topic but did you mean to put your email address as your name?
I think itās might be due to Tescoās double charging issue that customer had experience?
I didnāt quite catch this slump cause of the negative gain due to the consolidation that happened earlier this week 
Link of Source
https://www.moneysavingexpert.com/news/2021/02/tesco-customers-hit-by--double-charges----here-s-what-to-do-if-y/
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No , I never even knew I did it , thanks for flagging it up
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