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Breakingviews: Tesco should cut dividend

Wednesday, August 27, 2014 - 03:36

Shareholders ultimately lose out when too-high payouts prevent companies from responding well to problems. Right now, Tesco needs all the financial flexibility it can muster, says Breakingviews

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Brother told us strategy to test scares suddenly see only starts I believe it's a term of president Robert I -- What's the strategy. I'm kind of event. It's one of those so once salute and what's allot time opportunities. It's an unusual entry -- test their houses opportunity to cut the dividend this time. Because a new chief executive as you referred to those companies sponsor to coming in on December the votes topic. It's still it's an option to vote for Tesco which is clearly embattled -- new -- from -- The market -- didn't show today as well. Israel is up with it needs the most all the financial strength outlook muscle can pick it can get its hands on. And it seems to me that wallet count -- to pipe and -- plan was -- think that had another fed enough money down got loads of debt. That's still -- profitable. The pragmatist covent plus tons things of cuts. Nice difference and I think it does. But now as an opportunity to put to must orders pop hop so they can go into battle. I'm really reestablish itself as as the market leader and is that there's a danger. Here that actually making it the dividend the priority which in many circumstance such things the right thing for a company to do. But in these circumstances the dividend might come for us and that -- -- dictate the right strategy all the appropriate strategy. The tax -- -- -- -- -- we've got together thing going to instructs you write a manhunt for the dividend and you say your piece the share price might suffer fine. Now I think it might spend you know -- -- would have to -- the possibility that he could go down another I didn't handle or 20%. But I think he's a global would recognize that this process is already down 42% in the last three -- is. Down a bit since Dave Lewis. Was appointed -- level. Two copies. Except the joke about -- reflect Islam grind consensus that the dividend. Will become. And look what is that in the dividend yield on the stock is now 6%. Which is a continent which suggests the market takes a dividend of the company looks at the separate might not be hit as badly is something one would think there's not a reason. Why would you know to it because and scaly could be an unpopular move we have played as far as -- again he's -- The CFO is news if they gonna do it do it now. As an outside of DC this is a window open -- dialed that scramble through. Because -- it if they don't -- it now they might be forced him to cut the lights and then. If I have to do that then it could rebound own -- mutate and now time for please wait. And it could get away that active task for the best chance of succeed in the face and of course it if it proves it didn't actually have to cut the dividend things turned out well of this historic event. All right. Robert many thanks value cannot read Japanese auto -- -- -- on the britney's -- are you -- indeed the numbers quite shocking numbers -- different counts are world panel. -- racists of the village study set back in Japanese as well in the context that news that section of that piece if you're watching US or twelve bodies in sending thirty bsc. I'm -- of trouble as is --

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Breakingviews: Tesco should cut dividend

Wednesday, August 27, 2014 - 03:36