Stock of the Week: Tesco

Sales boomed at Britain's biggest supermarket during lockdown but competition is stiff in the grocery market

James Gard 15 October, 2020 | 10:45AM

Post-It Note

With fears of a second national lockdown growing and memories of panic-buying in March still fresh, it’s no surprise that our Twitter followers have chosen supermarket Tesco (TSCO) as the stock of the week by a large margin. Supermarkets became a lifeline for stuck-at-home shoppers in the pandemic and that has boosted their bottom lines in a tough year for retail in general.

Tesco’s recent half-year results underlines the stark difference between the pandemic winners and losers – pre-tax profits were up nearly 30% on 2019 at £551 million amid a 69% surge in online orders. Britain’s largest supermarket also surprised investors in a year of slashed dividends by raising its payout by 20% and the stock is now yielding over 4%.

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About Author

James Gard  is content editor for Morningstar.co.uk

 

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