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


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

Market Leadership


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


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


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

Share Buyback Initiative


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


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


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


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


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