Tesco share price looks poised for a higher open after the company announced it was providing a special dividend to existing shareholders. Under the terms of the proposed dividend payment, Tesco shareholders will receive a little over 50 pence for every ordinary share held. The dividend payment is expected to be in the region of £4.99 billion.
This dividend payment also comes as Tesco is set to issue a corporate bond worth 750 million Euros, which offers a 0.375% interest coupon and has a maturity date of 8-and-a-half years.
Tesco share price is trading at 241.9, with price trading within a range formed by the 239.7 support acting as the floor, and the 244.8 resistance acting as the ceiling. The price action on the daily chart has formed a symmetrical triangle, whose borders intersect the floor and ceiling of the horizontal price range.
A break below the 239.7 support brings the 234.3 price level into the picture, with 231.4 and 228.0 lining up as the additional targets to the south.
On the other hand, if the price breaks to the upside, in line with the expected direction of the break, 250.4 will become the next available target to the north. Above this level, the Tesco share price level of 254.8 (10 January 2020) becomes available as a potential upside target.
