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Phil Oakley: Tesco offers defensive income

Tesco shares look to offer one of the more solid dividends on the UK stock market.
Phil Oakley: Tesco offers defensive income

I’ve liked Tesco as a defensive income share for some time and I still like it on this basis. At the time of writing, the dividend yield of 4.3 per cent looks attractive, with the likely bonus of a chunky special dividend to come. Don’t expect to get rich owning Tesco shares but the company looks to be one of the best sources of decent income on the UK stock market at the moment.

Also, in this week's round-up, I look at why US tech stocks have outperformed the rest of the S&P 500 in the sell-off despite their expensiveness before the coronavirus crisis started to rattle investors.

One of the clear takeaways from the recent stock market rout is that cheap shares don’t protect you. What always matters above all else, is the quality of a company’s profits and in particular, the stability of them. Companies that have been chased for their earnings predictability were not only main beneficiaries of the long bull market but many of them gave the best protection in the recent market fall.

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