Re: Tosco Shares - Buy or Sell?

[BUY TESLA STOCK]

 

[Wilted20]

Source: FT


The 50p a share payout is equivalent to about a fifth of the share price. Normally, the share price would fall by that amount the moment the cut-off point for eligibility to the special dividend is reached. In this case, it is February 9.

To prevent such a drastic fall, Tesco is consolidating its share capital. Effectively this means the shares will trade at around the same price after the return of capital as they did before â€" but there will be fewer of them.

The mechanism for doing this is to issue 15 new ordinary shares for every 19 existing ones. For example, an investor with 100 existing shares would find themselves owning 78 new ones.

“Fractional entitlements” â€" 0.95 of a share in the example given above â€" will be aggregated and sold, with the proceeds given to the Trussell Trust, a Tesco-supported food bank charity.

Trading in the existing ordinary shares will cease after the market closes on February 12. The new shares will be admitted on February 15. If you hold shares in certificate form, you should retain your old certificates until the new ones arrive â€" they will be posted on February 26 â€" or you will not be able to trade.

The special dividend will also be paid on February 26, and is likely to be overwhelmingly approved whether you vote or not, since most Tesco stock is held by large financial institutions who will vote in favour.

[Minnie Mouse]

Remember if it’s £509 per 1000 shares and you have over  4000 shares and you take cash dividends you pay tax on any dividend you receive over £2000

[owlnight]

thank you wilted 20 and minnie mouse
i dont wish to reduce my shareholding at the moment, so if i apply to receive re-invested shares instead of the cash dividends, are you aware of any cut off dates to do so?

[BlueToon]

yes, i was pondering this, but a thought i dont know the answer to is, ...do re%u2026invested dividend shares have to held for 3yrs before selling tax free? anyone??

From HMRC,
""Dividend shares
You may be able to buy more shares with the dividends you get from free, partnership or matching shares (but only if your employer's scheme allows it). You will not pay Income Tax if you keep the dividend shares for at least 3 years.""

[owlnight]

so by that i take it means the sip shares  bluetoon?

[BlueToon]

"Owlnight"
I believe so.
And it fits with the amount of "locked in" shares I have, as the only ones I bought were well over 3 years ago, yet I still have some locked in.
The only way that could happen in my case is from the dividend re-invested as shares, which is the way I chose on the site.

[Shirl5508]

Re; special dividend.

Am I wrong in thinking the company is not actually paying us a dividend as they are consolidating the shares so both the new shares and dividend will be worth the same value I hold now !

What happens to the money for the sale ?

[Fun girl]

I have never sold any of my shares from saye or buy as you earn, I was wanting to keep them for when I retire but can't believe I'm going to be worse off with the special dividend, with the tax and less shares.

[grim up north]

Source: FT


The 50p a share payout is equivalent to about a fifth of the share price. Normally, the share price would fall by that amount the moment the cut-off point for eligibility to the special dividend is reached. In this case, it is February 9.

To prevent such a drastic fall, Tesco is consolidating its share capital. Effectively this means the shares will trade at around the same price after the return of capital as they did before â€" but there will be fewer of them.

The mechanism for doing this is to issue 15 new ordinary shares for every 19 existing ones. For example, an investor with 100 existing shares would find themselves owning 78 new ones.

“Fractional entitlements” â€" 0.95 of a share in the example given above â€" will be aggregated and sold, with the proceeds given to the Trussell Trust, a Tesco-supported food bank charity.

Trading in the existing ordinary shares will cease after the market closes on February 12. The new shares will be admitted on February 15. If you hold shares in certificate form, you should retain your old certificates until the new ones arrive â€" they will be posted on February 26 â€" or you will not be able to trade.

The special dividend will also be paid on February 26, and is likely to be overwhelmingly approved whether you vote or not, since most Tesco stock is held by large financial institutions who will vote in favour.

Is there anyway the aggregate money could be paid directly to me? A few years ago ,allegedly, money was stolen by senior team meant to be going to charity. Therefore I take no part in T* charity. I would prefer to give to charity directly myself

[owlnight]

I have never sold any of my shares from saye or buy as you earn, I was wanting to keep them for when I retire but can't believe I'm going to be worse off with the special dividend, with the tax and less shares.

1)Thanks bluetoon 

Fun girl, you can elect to have the special dividend to be re-invested as shares instead. there could be a slight loss, but at least you will still have your shares. you can do this through your shareview account if tou have one online, if not, ring them soos as. i believe the last chance to do this is this, i jave just read online ...............
Record date for participation in the DRIP for the Special Dividend and deadline for receipt of DRIP elections .......6pm 12th feb ‘21
hope this helps

[BUY TESLA STOCK]

A few of our management team are taking a £10 profit. 

[Katarn2000]

I just sold my shares then noticed this. Have I made a mistake?

[Fun girl]

I have never sold any of my shares from saye or buy as you earn, I was wanting to keep them for when I retire but can't believe I'm going to be worse off with the special dividend, with the tax and less shares.

1)Thanks bluetoon 

Fun girl, you can elect to have the special dividend to be re-invested as shares instead. there could be a slight loss, but at least you will still have your shares. you can do this through your shareview account if tou have one online, if not, ring them soos as. i believe the last chance to do this is this, i jave just read online ...............
Record date for participation in the DRIP for the Special Dividend and deadline for receipt of DRIP elections .......6pm 12th feb ‘21
hope this helps

[admin]Did you intend to include a response to the above quote ?[/admin]

[Fun girl]

Thanks a always reinvest all my dividend my baye are not taxed or my share isa but my other shares a will need to pay tax on them got a pall that's accounted and a will need to pay 7.5%tax on the dividend after paying this and reinvest my divedend am still worse of than before

[Mark calloway]

I dont understand anything to do with shares and dividends etc.

[owlnight]

FUN GIRL
so wrong that you lose out!

[just curious]

I wonder how the Trustees of the Tesco pension fund will be voting on this for its members as surely they will have some of the pension fund invested in Tosco , and with the number of Tosco shares that would be held by the pension fund how much will the pension fund gain / loose from the special dividend and the consolidation of the shares . 

[BlueToon]

I wonder how the Trustees of the Tesco pension fund will be voting on this.

The pension pot is getting a large sum, circa 2.5 Billion, to ensure that there is no deficit.

"Out of the Net Funds, the Board has made a significant pension contribution of £2.5 billion that
is expected to eliminate the current funding deficit and significantly reduce the prospect of
having to make further pension deficit contributions in the future.".

[lordadmiral]

I just sold my shares then noticed this. Have I made a mistake?

Yes one of the biggest in your life. You lost huge dividend.
For 1k shares we receive £510 tax free. That's £5.1 k for someone who hold 10k shares.

[Katarn2000]

Oops

[Fair play]

thank you wilted 20 and minnie mouse
i dont wish to reduce my shareholding at the moment, so if i apply to receive re-invested shares instead of the cash dividends, are you aware of any cut off dates to do so?

Would you be able to claim any tax paid back , if not a tax payer ?

[Fun girl]

You have to pay tax on dividends over £2000

[Pfs girlie]

Me neither...I normally buy the shares  then sell when at a good price ..

[Bigbadbob]

This  "Special Dividend" payment is misleading to persons not very savy around shares. The special dividend is 21% of a share price based on £2.42. But your share holding is then reduced by 21%. So Tesco are buying 21% of your shares of you at £2.42, even though that price may not suite you. As mentioned before on this forum you can have your special dividend reinvested to rebuy shares back, but i think I read on the information supplied by Tesco that these shares would become tied in for a certain period of time. So in reality for most people, Tesco are buying 21% of your shares of you for £2.42