Dividends

Dividend dates

  Date
Ex-dividend date interim 12 October 2017
Record date interim 13 October 2017
Dividend Reinvestment Plan Election date 3 November 2017
Interim dividend payable 24 November 2017

You can calculate the value of your latest dividend and find information on historical dividends here.

What is a dividend?

Dividends are payments made to everyone who holds shares on the Record Date. The frequency of dividend payments and amount paid per share are based on the Company's dividend policy and the number of shares held by shareholders at the Record Date. Dividends can be paid in cash or used to buy more Tesco PLC shares.

What is the ex-dividend date?

We consult the London Stock Exchange Dividend Procedure Timetable to set the date on which shares are sold without entitlement to the next dividend payment. This is known as the ex-dividend date. If you buy shares before the ex-dividend date, you are entitled to the most recently-announced dividend; if you buy after that date, the dividend is paid to the previous owner of the shares

What is the record date?

A dividend is paid based on the number of shares held on the share register on a particular date, which is known as the record date. In accordance with the London Stock Exchange Dividend Procedure Timetable, the record date is currently one day after the ex-dividend date. If you receive a dividend and are not sure if you are entitled to it, you should contact the agent who sold your shares for you.

How can I have my dividends paid?

You have the option of:

  • having them paid direct to your bank or building society account; or
  • electing to use them to buy more Tesco shares via the Dividend Reinvestment plan; or
  • being sent a cheque to your registered address.

If dividends are paid direct into your bank or building society account through the BACS system, it avoids the risk of cheques being lost in the post and your dividend will be in your account on the day the payment is made. Our Registrar, Equiniti Limited, will send you a dividend confirmation to confirm the amount and to which account it has been paid.

If you need to update your bank/building society account details, you can do so through your Shareview Portfolio at www.shareview.co.uk or, if you are a sole shareholder of 2,500 shares or less, you can update your bank/building society account details be calling Equiniti on 0371 384 2977*.

If you are a non-UK shareholder you can sign up to Equiniti’s Overseas Payment Service. For more information please visit www.shareview.co.uk/info/ops or contact the shareholder helpline on +44 121 415 7053**.

What is the Dividend Reinvestment Plan (DRIP)?

We operate a Dividend Reinvestment Plan which allows you to reinvest your cash dividends in additional Tesco PLC shares.

If you would like to join or leave the DRIP you can do so through your Shareview Portfolio at www.shareview.co.uk or by calling Equiniti on 0371 384 2977* from the UK or +44 121 415 7053** from overseas.

Do I have to pay tax on my dividends?

From April 2016 the Dividend Tax Credit was replaced by a tax-free Dividend Allowance for UK tax payers. This Dividend Allowance means that UK tax is not payable on the first £5,000 of dividend income in the relevant tax year irrespective of non-dividend income. The allowance is available to any UK tax payer who has dividend income. All dividend payments are now paid gross, with the tax credit voucher being replaced by a dividend confirmation statement.

In addition, the headline rates of dividend tax have also changed:

  • 7.5% on dividend income with the basic rate band
  • 32.5% on dividend income with the higher rate band
  • 38.1% on dividend income within the additional rate band

Please note that the Dividend Allowance rate is due to be reduced to £2,000 from 6 April 2018. Please refer to www.gov.uk/tax-on-dividends for more information.

If you sell any of your shares at a profit, you may have to pay capital gains tax.

What should I do if I lose my dividend cheque?

Contact the Equiniti helpline on 0371 384 2977* (from outside the UK: +44 121 415 7053**) as soon as possible and confirm which payment has been lost. Equiniti will stop the cheque and issue a replacement. An administration charge may apply.

Dividend cheques are currently valid for one year from the date of payment. After this time, you can return any uncashed cheques to Equiniti who will issue a replacement. There may be an administration charge for this service.

 

* Lines open 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays in England and Wales). Calls to this number from a landline are charged at national rates. Calls to this number from a mobile device may incur network extras.

** Lines open 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays in England and Wales).