Sainsbury's shares have fallen 12% between
The share price has advanced only from 261p to 309p over the past decade (the spike in the middle is the takeover bid that didn't happen), so most of the returns have come from dividends. There is no shame in that, of course, especially as the point to remember is that King inherited a shambles.
Back in 2004, Sainsbury's was in the middle of multiple profit warnings, the distribution system was in chaos thanks to predecessor Sir
Current Sainsbury's shareholders may have to get used to life as owners of a mere income stock. The "main event," as King put it yesterday, may be groceries sold through traditional supermarkets but the march of the discounters has changed the game. Price competition is fiercer, profit margins are under pressure and the outlook is blurred.
Sainsbury's joint venture with Danish discounter
So success for
Yet the dividend yield is 5.5%. If you're a believer, that's a juicy opportunity. The alternative view is that Coupe will have to run very hard to stand still.
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