Amid a challenging year for the FTSE 100, Tesco shares have demonstrated remarkable resilience, delivering a strong return of 21% in 2023.

Tesco's Outperformance

#1

Tesco, amid budget competition, secures UK supermarket dominance with Aldi price match and Clubcard features, increasing market share.

Market Leadership

#2

Tesco gained market share for the fourth consecutive month, capturing 27.4% of the market, representing an increase of 0.4 percentage points over the previous year.

Market Share Growth

#3

Tesco’s first half report shows a strong 13.5% year-on-year increase in underlying retail operating profit to £1.4bn, leading to optimistic forecasts.

Profit Surge

#4

Tesco's £1.6bn share buyback programme, running from October 2021, underlines confidence in enhancing future cash flow and shareholder returns.

Share Buyback Initiative

#5

Reduced food inflation aids Tesco, lessening the lure of cheaper alternatives and potentially freeing up income for higher-margin non-food items.

Favorable Inflation Dynamic

#6

Tesco stock, with a 4.6% dividend yield, offers an attractive opportunity for passive income, potentially yielding £230 a year from a £5,000 investment.

Dividend Appeal

#7

The strong dividend cover, at double next year's estimated earnings, provides a reassuring sign of the sustainability of Tesco's dividend payout.

Dividend Safety

#8

Despite the positive impact of Tesco Bank, the company may sell it, with Barclays showing interest, which would potentially reshape Tesco's financial structure.

Tesco Bank

#9

The upcoming Christmas season is important for Tesco, as market dynamics and potential price wars could impact market share and margins, which needs to be closely monitored.

Christmas Outlook

#10