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Apparently, the average person spends around £200 a month on groceries in the UK. Given that I regularly shop at ( ), this got me wondering how many shares I’d need to cover that in dividends. Working out the yield To work this out the old-fashioned way, I need to look at a few things.

Firstly, the dividend per share paid by Tesco. For its FY24 (which ended in February), the supermarket giant paid out 12.1p per share.



That was 11% more than the previous year, when it kept its payout flat due to the disruption and uncertainty caused by the pandemic. However, those cash payouts are now in the rear-view mirror, with the second and final FY24 dividend of 8.25p paid out to shareholders in June.

So I need to look at the anticipated dividend for this year (FY25), which is forecast to be 12.7p per share. Next, the share price, which will give us our dividend yield.

As I write on 12 July, this is 315p, translating into a forward yield of just over 4%. Therefore, I’d need about 18,900 Tesco shares to bag the equivalent of £200 a month in dividends and pay for my groceries. They would set me back approximately £59,535.

Note, that’s more than the , so there could be income tax implications. A solid recent record Tesco has a good record of growing its dividend since reinstating it in 2017 following an accounting scandal. It’s grown at a compound annual rate of 10.

6% since FY19. However, the fact that even a retail stalwart like Tesco didn’t pay out for three years serves to r.

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