Tesco Dividend yield




   GBP/share 
 Price  2.76
 Dividend  0.09
 Earnings  0.84
 Cash-flow  0.08
 Book value  1.62
 Equity  1.68

Tesco is part of Food and Drug Retailers business, which is part of Consumer Services industry. Tesco is a company from UK, and his stocks are publicly traded.

Tesco paid a total dividend of 688 million GBP last year, for a market value of 21,097 millions (Market Cap 20,821 millions). Dividend per share of Tesco is 0.09 GBP, and his stock market price 2.76 GBP.

According to the chart below, where dividend yield is displayed, Tesco has a dividend yield of 3.32%, which is higher than the amount offered by both the market average and companies from UK. It is also bigger than average of Consumer Services industry. This high dividend yield might be a sign to worry about the future of the company so deeper analysis is needed.

In addition, you should compare Tesco dividend yield with other Food and Drug Retailers companies or firms from UK.

Dividend yield of Tesco

Tesco Dividend Payout

About the ability of Tesco to maintain his current dividend of GBP 0.09 per share, an amount that accounts for 3.32%, we should study its payout ratio both on earnings and on cash-flows (see chart below). Tesco payout on ernings is currently 10.71%, which is lower than the market average and companies of Consumer Services industry, which are 38.25% and 25.53% respectively. Both figures lead us to believe that there is confidence that Tescocan maintain his current dividend.

The payout on earnings should be complemented with the payout on cash flow since it is this last amount the one which can be distributed to shareholders. Cash flow per share of Tesco is GBP 0.08 per share, which is lower than the dividend per share paid by the company of GBP 0.09, so the company does not generate enough cash to maintain his dividend in the future.

The following figure shows payout ratios over earnings and cashflow of Tesco, compared againt world market average, UK companies, Consumer Services industry and Food and Drug Retailers sector companies.

Tesco payout

Tesco Dividend History

Year Yield  GBP  Paypout  Shares* 
Present3.32%0.0910.71%7,644
20213.16%0.0910.84%7,732
20204.19%0.1071.43%9,794
20192.64%0.0743.75%9,794
20181.93%0.0433.33%9,784
20170.48%0.0133.33%8,176
20160.00%0.000.00%8,123
20150.00%0.000.00%8,123

*In millions

Tesco Stock performance

Finally, last moth Tesco showed a return of -4.70% compared to a worldwide 1.12% average, and a 0.56% of Consumer Services firms. Over the last year, the company obtained a 20.60% versus a worldwide performance of a 5.73%. More detailed information can be seen in the following graph for UK and Food and Drug Retailers firms.

Tesco stock and market return