The special dividend will be paid based on how many shares you held at the close on Friday, 12 February (i.e. before the reverse split)
Therefore, to work out your dividend, divide your current shareholding by 15 and then multiply by 19 and then multiply by £0.51
Using @InvestingAdventure example, 120/15190.51 = £77.52
The expectation of this whole process is that you end up in the same place as before, excepting any other movement in the markets.
Hi I am trying to set a limit order buy based on this new pricing but it says too far away from current price. Please can admin remove this?
Thanks but again I don’t see how this works out beneficial to shareholders? Where has the £5B being returned gone? Special dividend just offsets the consolidation
The company has been devalued by £5B by paying the special dividend.
They did the share consolidation to avoid the share price dropping dramatically.
If they’d just paid the special dividend, the shares would have dropped by ~20%. Essentially, by doing the reverse split they’ve taken 20% of your shares off of you, rather than dropping the value of your existing shares by 20%. It makes no difference.
Whenever a company pays a dividend, you expect the shares to drop by the value that they have paid, but usually the percentage isn’t quite as dramatic!
Think of it this way. You had £150 in your bank. You give away £50. What’s your net worth. That’s pretty much what has happened with Tesco. They sold a chunk of the company and gave you that cash. Effectively the company is now worth less.
You could argue that although it is now a smaller more focussed company its a better investment.
After the March special dividend i re-invested two and half times what i got paid out.
I have had two nice dividend pay-out in July, November and 14% in green.
I wonder how others got on since then?
It is certainly ticking along nicely