Tesco Reveals Dividend Data

Tesco has announced plans to pay a 1p Interim dividend, it’s first in three years, after enjoying a 27% increase in first-half profits.

shareprices.com - Wednesday, October 04, 2017

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The supermarket chain’s last payout was a 1.16p interim payout in December 2014. The news of this fresh round of payouts boosted shares slightly, before they reversed those gains to trade flat, at 189.7p.

Tesco scrapped its previous round of dividends a month after that interim payment, as Chief Executive Dave Lewis began a turnaround plan for the company, following a scandal regarding overstatement of profits.

The retailer said that it planned to double its payout for the final dividend, and that it would cover the payments with two time earnings. This is a small step towards restarting dividends, and it is expected that the total payout for the financial year will be far short of the 14.76p which was paid out in 2014.

Chief Executive Dave Lewis explained that the announcement reflected the confidence that they could build on their strong performance to date and that in doing so, they could create long-term sustainable value for all of their stakeholders. The news has been welcomed by investment fund holders, including Ed Meier of the Old Mutual UK Equity Income fund.

The return to the dividend list was anticipated, but it is still good news and shows that the company is well on track to make a full recovery, after a couple of challenging years for the whole of the supermarket sector in the UK.


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