U.K.'s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks

Barron's Take Consumer ABF.LN CWK.LN HFG.LN MRW.LN SBRY.LN TSCO.LN ABF Barron's Cranswick Cranswick Food Groups Hilton Food Group Hilton Food Group Morrisons Costco Sainsbury's Shore Capital Target Tesco Tesco Walmart Retail/Wholesale Food Retailing Supermarkets/Grocery Stores Specialty Retailing Retail Dave Lewis Clive Morrisons Sainsbury Europe United Kingdom Western Europe Financial Performance Earnings Dividends Corporate Actions Corporate/Industrial News Content Types Factiva Filters C&E Exclusion Filter C&E Industry News Filter COST CWK.LN HFG.LN I/FDR I/RTS M/RTWS N/CAC N/CNW N/DIV N/ERN N/PFM R/EU R/UK R/WEU TSCDY TSCO.LN WMT Barrons.com Barrons Blogs CODES_REVIEWED Consumer Barron's Take author Archie Mitchell author|Archie Mitchell author Archie Mitchell id Archie Mitchell name Archie Mitchell topicid rank 1 barrons_display_brand BARTAKE barrons_display_brand|BARTAKE codetype BARRONS_DISPLAY_BRAND name Barron's Take source MANUAL value BARTAKE code BARTAKE canbedisplaybrand true status modified barrons_display_subject BARCONSUMER barrons_display_subject|BARCONSUMER canbedisplaysubject true codetype BARRONS_DISPLAY_SUBJECT name Consumer source MANUAL value BARCONSUMER code BARCONSUMER status modified co pclb co|pclb country US symbol COST displayname Costco Wholesale why occur extractedtext Costco source FACTIVA seoname costco_wholesale countrycode US relevancerange low chartingsymbol STOCK/US/XNAS/COST fcode pclb fullextractedtext Costco ticker COST confidence 100 subcat com relevance 17 significance passing name Costco confidencerange high exchange Nasdaq exchangeisocode XNAS codetype co code pclb onlinesignificance passing-mention co wlmrt co|wlmrt country US symbol WMT displayname Walmart why occur extractedtext Walmart source FACTIVA seoname walmart countrycode US relevancerange low chartingsymbol STOCK/US/XNYS/WMT fcode wlmrt fullextractedtext Walmart ticker WMT confidence 100 subcat com relevance 21 significance passing name Walmart confidencerange high exchange NYSE exchangeisocode XNYS codetype co code wlmrt onlinesignificance passing-mention co Target co|Target fullextractedtext Target country US symbol TGT ticker TGT displayname Target extractedtext Target source FACTIVA subcat com seoname target countrycode US name Target exchange NYSE exchangeisocode XNYS chartingsymbol STOCK/US/XNYS/TGT codetype co code target co tsco co|tsco country UK symbol TSCO.LN codetype co displayname Tesco why about extractedtext Tesco source FACTIVA occurs true seoname tesco name Tesco orgtype public countrycode UK relevancerange high chartingsymbol STOCK/UK/XLON/TSCO fcode tsco fullextractedtext Tesco ticker UK:TSCO confidence 100 subcat com code tsco relevance 87 significance prominent confidencerange high exchangeisocode XLON onlinesignificance prominent co crmig co|crmig country UK symbol CWK.LN codetype co displayname Cranswick why occur extractedtext Cranswick source FACTIVA seoname cranswick name Cranswick countrycode UK relevancerange low chartingsymbol STOCK/UK/XLON/CWK fcode crmig fullextractedtext Cranswick ticker UK:CWK confidence 90 subcat com code crmig relevance 16 significance passing confidencerange high exchangeisocode XLON onlinesignificance passing-mention co hltfgp co|hltfgp country UK symbol HFG.LN codetype co displayname Hilton Food Group why occur extractedtext Hilton Food Group source FACTIVA seoname hilton_food_group name Hilton Food Group countrycode UK relevancerange low chartingsymbol STOCK/UK/XLON/HFG fcode hltfgp fullextractedtext Hilton Food Group ticker UK:HFG confidence 91 subcat com code hltfgp relevance 17 significance passing confidencerange high exchangeisocode XLON onlinesignificance passing-mention co Barron's co|Barron's fullextractedtext Barron's codetype co displayname Barron's extractedtext Barron's source FACTIVA subcat med code barron_s name Barron's co Food Groups co|Food Groups fullextractedtext Food Groups codetype co displayname Food Groups extractedtext Food Groups source FACTIVA subcat com code food_groups name Food Groups co TSCO co|TSCO symbol TSCO.LN country UK codetype co displayname Tesco extractedtext Tesco source MANUAL code uk_tsco name Tesco significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/TSCO fcode TSCO status modified onlinesignificance prominent co MORW co|MORW symbol MRW.LN country UK codetype co displayname Wm. Morrison Supermarkets extractedtext Morrisons source MANUAL code uk_mrw name Morrisons significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/MRW fcode MORW status modified onlinesignificance passing-mention co SBRY co|SBRY symbol SBRY.LN country UK codetype co displayname J Sainsbury extractedtext Sainsbury's source MANUAL code uk_sbry name Sainsbury's significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/SBRY fcode SBRY status modified onlinesignificance passing-mention co shrcap co|shrcap country United Kingdom codetype co displayname Shore Capital Group extractedtext Shore Capital source MANUAL code shrcap name Shore Capital significance prominent fcode shrcap status modified onlinesignificance passing-mention co ABF co|ABF symbol ABF.LN country UK codetype co displayname Associated British Foods extractedtext ABF source MANUAL code uk_abf name ABF significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/ABF fcode ABF status modified onlinesignificance passing-mention co CRMIG co|CRMIG symbol CWK.LN country UK codetype co displayname Cranswick extractedtext Cranswick source MANUAL code uk_cwk name Cranswick significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/CWK fcode CRMIG status modified onlinesignificance passing-mention co HLTFGP co|HLTFGP symbol HFG.LN country UK codetype co displayname Hilton Food Group extractedtext Hilton Food Group source MANUAL code uk_hfg name Hilton Food Group significance prominent exchange U.K.: London exchangeisocode XLON chartingsymbol STOCK/UK/XLON/HFG fcode HLTFGP status modified onlinesignificance passing-mention company TSCO.LN company|TSCO.LN name Tesco, significance PASSING-MENTION company MRW.LN company|MRW.LN name Morrisons significance PASSING-MENTION company SBRY.LN company|SBRY.LN name Sainsbury’s significance PASSING-MENTION company ABF.LN company|ABF.LN name ABF significance PASSING-MENTION company CWK.LN company|CWK.LN name Cranswick significance PASSING-MENTION company HFG.LN company|HFG.LN name Hilton Food Group significance PASSING-MENTION djn COST djn|COST significance passing name COST why occur source FACTIVA fcode COST codetype djn code cost onlinesignificance passing-mention djn WMT djn|WMT significance passing name WMT why occur source FACTIVA fcode WMT codetype djn code wmt onlinesignificance passing-mention djn CWK.LN djn|CWK.LN codetype djn why occur source FACTIVA code cwk_ln name CWK.LN significance passing fcode CWK.LN onlinesignificance passing-mention djn HFG.LN djn|HFG.LN codetype djn why occur source FACTIVA code hfg_ln name HFG.LN significance passing fcode HFG.LN onlinesignificance passing-mention djn TSCDY djn|TSCDY codetype djn why about source FACTIVA occurs true code tscdy name TSCDY significance prominent fcode TSCDY onlinesignificance prominent djn TSCO.LN djn|TSCO.LN codetype djn why about source FACTIVA occurs true code tsco_ln name TSCO.LN significance prominent fcode TSCO.LN onlinesignificance prominent djn I/FDR djn|I/FDR codetype djn why about source FACTIVA code i_fdr name I/FDR significance prominent fcode I/FDR onlinesignificance prominent djn M/RTWS djn|M/RTWS codetype djn name M/RTWS why lineage source FACTIVA code m_rtws fcode M/RTWS djn I/RTS djn|I/RTS codetype djn name I/RTS why lineage source FACTIVA code i_rts fcode I/RTS djn N/ERN djn|N/ERN codetype djn why about source FACTIVA code n_ern name N/ERN significance prominent fcode N/ERN onlinesignificance prominent djn N/PFM djn|N/PFM codetype djn why about source FACTIVA code n_pfm name N/PFM significance prominent fcode N/PFM onlinesignificance prominent djn N/DIV djn|N/DIV codetype djn why about source FACTIVA code n_div name N/DIV significance prominent fcode N/DIV onlinesignificance prominent djn N/CAC djn|N/CAC codetype djn name N/CAC why lineage source FACTIVA code n_cac fcode N/CAC djn N/CNW djn|N/CNW codetype djn name N/CNW why lineage source FACTIVA code n_cnw fcode N/CNW djn R/UK djn|R/UK codetype djn why about source FACTIVA code r_uk name R/UK significance prominent fcode R/UK onlinesignificance prominent djn R/EU djn|R/EU codetype djn name R/EU why lineage source FACTIVA code r_eu fcode R/EU djn R/WEU djn|R/WEU codetype djn name R/WEU why lineage source FACTIVA code r_weu fcode R/WEU first_publish_headline U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks first_publish_headline|U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks flow Barrons.com flow|Barrons.com codetype FLOW name Barrons.com source MANUAL value Barrons.com code online status modified name Online title Product code Barrons.com flow Barrons Blogs flow|Barrons Blogs codetype FLOW source MANUAL title Product code Barrons_Blogs name Barrons Blogs value Barrons Blogs status modified headline U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks headline|U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks id facebook id|facebook news_tab_url https://www.barrons.com/articles/tesco-boosted-its-dividend-despite-warning-of-increasing-costs-to-come-linked-to-the-coronavirus-crisis-51586348775 in i6411 in|i6411 codetype in why about source FACTIVA code i6411 name Supermarkets/Grocery Stores significance prominent fcode i6411 onlinesignificance prominent in i64 in|i64 codetype in name Retail/Wholesale why lineage source FACTIVA code i64 fcode i64 in i641 in|i641 codetype in name Food Retailing why lineage source FACTIVA code i641 fcode i641 in i654 in|i654 codetype in name Specialty Retailing why lineage source FACTIVA code i654 fcode i654 in iretail in|iretail codetype in name Retail why lineage source FACTIVA code iretail fcode iretail media media-16 media|media-16 responsive layout wrap media media-1 media|media-1 media 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why lineage source FACTIVA code ccat fcode ccat ns ncat ns|ncat codetype ns why lineage source FACTIVA code ncat name Content Types internalsymbol true fcode ncat ns nfact ns|nfact codetype ns why lineage source FACTIVA code nfact name Factiva Filters internalsymbol true fcode nfact ns nfce ns|nfce codetype ns why lineage source FACTIVA code nfce name C&E Exclusion Filter internalsymbol true fcode nfce ns nfcpin ns|nfcpin codetype ns why lineage source FACTIVA code nfcpin name C&E Industry News Filter internalsymbol true fcode nfcpin nwchain SB516013059699500037965045863110737538781881 nwchain|SB516013059699500037965045863110737538781881 pe 76697634 pe|76697634 lastname Lewis codetype pe displayname Lewis, Dave confidence 100 why occur extractedtext Dave Lewis source FACTIVA code 76697634 relevance 49 name Dave Lewis significance passing firstname Dave nameformat surname_first confidencerange high relevancerange low fcode 76697634 onlinesignificance passing-mention pe Clive pe|Clive codetype pe displayname Clive extractedtext Clive source FACTIVA code clive name Clive firstname Clive nameformat surname_first pe Morrisons pe|Morrisons codetype pe displayname Morrisons extractedtext Morrisons source FACTIVA code morrisons name Morrisons firstname Morrisons nameformat surname_first pe Sainsbury pe|Sainsbury lastname Sainsbury codetype pe displayname Sainsbury extractedtext Sainsbury source FACTIVA code sainsbury name Sainsbury nameformat surname_first re uk re|uk codetype re why about source FACTIVA subcat cntry code uk name United Kingdom significance prominent fcode uk onlinesignificance prominent re eurz re|eurz codetype re why lineage source FACTIVA subcat snr code eurz name Europe fcode eurz re weurz re|weurz codetype re why lineage source FACTIVA subcat sc code weurz name Western Europe fcode weurz relay SYND relay|SYND codetype RELAY name Syndication source EXPANDER value SYND code synd status modified statistic CODES_REVIEWED statistic|CODES_REVIEWED name CODES_REVIEWED value CODES_REVIEWED codetype STATISTIC code CODES_REVIEWED subject BARTAKE subject|BARTAKE codetype SUBJECT title Barron's Take code BARTAKE name Barron's Take ruleid BARTAKE value BARTAKE canbedisplaybrand true status modified subject BARCONSUMER subject|BARCONSUMER codetype SUBJECT title Consumer code BARCONSUMER name Consumer canbedisplaysubject true ruleid BARCONSUMER value BARCONSUMER status modified wordcount 477 wordcount|477 Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images Getty Images U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks Tesco boosted its dividend despite warning of increasing costs to come linked to the coronavirus crisis.

Tesco announced a more than 50% boost to its dividend, bucking the trend of big businesses scrapping shareholder payouts and delivering a final dividend of 6.5p per share.

U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks

U.K. supermarkets are emerging as a relatively safe source for shareholder payouts and are a good indication of what may be replicated in the U.S.

https://www.marketwatch.com/story/walmart-raises-dividend-2-2020-02-18 https://www.barrons.com/news/virus-hit-tesco-recruits-45-000-uk-supermarket-staff-01586337004 https://www.barrons.com/articles/u-k-banks-scrap-dividends-over-coronavirus-crisis-the-stocks-are-tumbling-51585737195 https://www.barrons.com/articles/here-is-a-list-of-companies-that-have-suspended-dividends-or-stopped-stock-buybacks-in-april-51585927172 https://www.marketwatch.com/story/stockpiling-triggers-boom-in-grocery-sales-as-self-isolating-brits-buy-22-more-alcohol-2020-03-31 U.K.’s Biggest Grocer Tesco Issues Bumper Dividend as Food Groups Emerge as Defensive Stocks By Archie Mitchell Getty Images Tesco sees sales soar as demand for groceries increases amid the coronavirus crisis.

Tesco, the U.K.’s biggest grocer, bucked the trend of big businesses scrapping shareholder payouts by delivering a boost to its final dividend amounting to 6.5p ($8.03 cents) per share.

Supermarkets have become defensive stocks as self-isolating shoppers stockpile food and grocers see record demand.

Already, rival Morrisons last month announced a 4.84p per share final dividend for the 2019-20 financial year and analysts predict Sainsbury’s, due to report on Apr. 30, is likely to follow suit.

U.K. supermarkets are emerging as a relatively safe source for shareholder payouts and are a good indication of what may be replicated in the U.S.

Wholesale club Costco and leading retailers Target and Walmart routinely offer dividends. Walmart recently upped its dividend for the 2020-21 fiscal year by 2% to $2.16 per share.

Read: Virus-hit Tesco Recruits 45,000 U.K. Supermarket Staff

Banks, insurers, and airlines have suspended dividends in response to the coronavirus crisis. But supermarkets, health companies, and food groups have enjoyed increasing demand and like a safe haven for dividends.

Stockbroker Shore Capital downgraded Tesco from buy to hold but said it and other supermarkets, as well ABF, Cranswick, and Hilton Food Group would likely continue to pay out through the pandemic.

“This is just a cautionary step back, people should not be selling their Tesco shares. Even if it is a sideways year we are still looking at another 9p per share in dividends which at the moment I think is worth having,” Clive Black, head of research at the broker, told Barron’s.

Read: Here Is A List of Companies That Have Suspended Dividends or Stopped Stock Buybacks in April

Tesco posted pre-tax profit of £1.3 billion for the year to the end of February — down 18.7% on sales of £56.6 billion following a successful turnaround by Chief Executive Dave Lewis, who is stepping down in October.

Tesco expects increasing costs associated with the coronavirus could be between £650m and £925m, as well as a fall in revenue from its non- grocery departments, but this will be offset by increasing demand for groceries, “prudential management” and business rates relief.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.