What’s Tesco’s dividend cut tells us about the future for stocks

Don't bet Tesco's dividend cut is a one-off, says Matthew Lynn. There could be much more to come.

Dave Lewis certainly knows how to arrive with a splash. Taking up the reins as the new boss of Tesco this week, his first move at the embattled retailer was to slash the dividend.

Tesco cut its half-year payout by 75%, vowing to spend the money on taking the fight to the new breed of low-cost rivals that has eaten into its market share.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.