Monday, 15 April 2013

Is the Tesco dividend policy to suffer from Fresh and Easy?

Tesco is to release it's results later this week however it has been suggested that it may be taking a £1bn hit as a result of the failure to penetrate the American market with their venture Fresh and Easy. Tesco has had a robust dividend policy of year on year dividend growth in recent history. They slogged away at this Fresh and Easy venture for a few years and like any other attempt by other companies to get into the market in America they failed and finally decided to cut their losses. This came as a relief to many shareholders believing the venture to be a money pit. We shall see what dividend is announced in the results on Wednesday and whether they stick with their dividend policy. I hold Tesco currently but will reassess my position following the results.

No comments: