Friday, 1 May 2015

Tesco Dividend Payments

Someone actually asked me about Tesco dividend payments the other day, possibly because I did a post about the decreasing Tesco share price. I had also mentioned that I thought this may have a detrimental effect on Tesco dividend payments. Now that someone has asked the question I need to do some research and find the answer. I guess the best thing for me to do is consider the history of these dividend payments over the past 5 years or so. Of course this does not necessarily predict the future payments but it might help you decide if you want to invest in this particular supermarket stock.

I checked the Tesco dividend history and have added up the prelim and interim payments since 2011. The yield was between 3 and 4.6% until 2015 which looks to be poor. You can see the results below.

Year Dividend per share (p) Dividend payment if you hold 1000 shares (£)/th>
2015 1.16 (prelim still needs to be added later in the year) 11.60
2014 14.76 1476.0
2013 14.76 147.60
2012 14.76 147.60
2011 14.46 144.60

Tesco has not experienced any dividend growth in the last few years but unfortunately the first signs for this year look as if they will be seeing a massive drop in dividend payments. I like high paying dividend stocks with a decent yield so I will not be investing in Tesco right now

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1 comment:

  1. I read that they're not paying a final dividend this year. I guess it'll be years before they recover.

    ReplyDelete

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