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Tesco special dividend and consolidation

Practical Issues
Bouleversee
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Tesco special dividend and consolidation

#399895

Postby Bouleversee » March 28th, 2021, 7:51 pm

Am I correct in assuming that apart from declaring and unfortunately paying tax on the special dividend (shares not in ISA, unfortunately) from Tesco, I don't need to do anything about the accompanying consolidation until I sell the shares which may be not long hence? (Tesco doesn't seem to have done this shareholder any favours by paying this dividend.)

monabri
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Re: Tesco special dividend and consolidation

#399995

Postby monabri » March 29th, 2021, 9:51 am

Bouleversee wrote:Am I correct in assuming that apart from declaring and unfortunately paying tax on the special dividend (shares not in ISA, unfortunately) from Tesco, I don't need to do anything about the accompanying consolidation until I sell the shares which may be not long hence? (Tesco doesn't seem to have done this shareholder any favours by paying this dividend.)



It looks like your summary is correct and based on text in the link below the consolidation has already happened so you should currently have fewer shares in your account than before consolidation.

viewtopic.php?p=398970#p398970

I don't hold nor follow TSCO but the consolidation was 15 shares for 19 with a 50.93p return (special) paid 26th Feb.

( if the shares are in iWeb, one could look at previous quarterly reports to verify the quantity of TSCO shares held before consolidation and what one holds now.....or, of course, one's own records might verify the consolidation).

Nothing else to do other than pay the tax (based on a previous comment you made elsewhere regarding level of dividends) and decide on the time to sell if that's your intention.

Bouleversee
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Re: Tesco special dividend and consolidation

#400010

Postby Bouleversee » March 29th, 2021, 10:46 am

Thanks, Mon. I have already received a new certificate for the correct no. of shares. I had intended to bed and isa before that happened but missed the boat. I am now wondering whether to just sell.

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Re: Tesco special dividend and consolidation

#400025

Postby Dod101 » March 29th, 2021, 11:39 am

Bouleversee wrote:Thanks, Mon. I have already received a new certificate for the correct no. of shares. I had intended to bed and isa before that happened but missed the boat. I am now wondering whether to just sell.


As you may know, I hold no supermarket shares and have no current intention of doing so. (Never say never!) The market is more or less a finite one and the supermarkets are just knocking spots off each other to try to gain market share. See for example the current campaign by Tesco (price match with Aldi) So they are competing on price with Aldi but without Aldi's low cost structure. Does that sound a good idea? Not in the long term at least and the trouble with this sort of campaign is that when they revert to the original price customers will just be off to the real Aldi.

Dod

Bouleversee
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Re: Tesco special dividend and consolidation

#400045

Postby Bouleversee » March 29th, 2021, 12:41 pm

Dod101 wrote:
Bouleversee wrote:Thanks, Mon. I have already received a new certificate for the correct no. of shares. I had intended to bed and isa before that happened but missed the boat. I am now wondering whether to just sell.


As you may know, I hold no supermarket shares and have no current intention of doing so. (Never say never!) The market is more or less a finite one and the supermarkets are just knocking spots off each other to try to gain market share. See for example the current campaign by Tesco (price match with Aldi) So they are competing on price with Aldi but without Aldi's low cost structure. Does that sound a good idea? Not in the long term at least and the trouble with this sort of campaign is that when they revert to the original price customers will just be off to the real Aldi.

Dod


Sainsbury's are also doing price matching and I think also with Aldi but my bills there seem to increase all the time and the portions get smaller with many things. I hold Sainsbury's as well as Tesco and am losing on both of them.

Dod101
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Re: Tesco special dividend and consolidation

#400056

Postby Dod101 » March 29th, 2021, 1:10 pm

Snorvey wrote:If the big supermarkets are price matching the discounters then they won't be wearing all the cost on their own


You mean their suppliers will be bearing part of the cost? Yes I can see that but it still means that the supermarket's margins are being squeezed.

Dod

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Re: Tesco special dividend and consolidation

#400236

Postby redsturgeon » March 30th, 2021, 6:22 am

Moderator Message:
This is the Taxes board. Please keep future posts on topic.


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