I think it’s time to double down on the Tesco share price

first_img Our 6 ‘Best Buys Now’ Shares Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Enter Your Email Address Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I think it’s time to double down on the Tesco share price Image source: Getty Images. The Tesco (LSE: TSCO) share price has been one of the best UK investments to own this year. Over the past 12 months, an investment in the retail giant has outperformed the wider FTSE 100 by around 14%, including dividends. The company’s defensive nature and size have helped it outperform in the current economic environment. And, as the coronavirus crisis continues, I think these advantages will continue to work in the group’s favour. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Tesco share price advantagesAccording to its latest trading update, the group’s sales during the first half of its financial year increased by 6.6%. A jump in food sales helped offset a decline in other parts of the business. Unfortunately, costs also lept. Tesco has incurred significant expenses relating to the coronavirus pandemic. These reached £530m in the first half of the year, and will total £725m for the full year. However, the government’s year-long business rates holiday will offset a good chunk of this. As a result, group operating profit in the first half of Tesco’s financial year was £1.01bn, down 4.5% on last year. I think these figures show the retailer’s resilience in uncertain times. Even though the group has had to grapple with higher costs, stockpiling by customers and a substantial drop in sales of some product lines, it has come out relatively unscathed. This bodes well for the future. As the coronavirus crisis continues, I think investors would do best to stick with companies that have already shown they can weather the storm.Tesco’s first-half results showed it falls into this bucket. Therefore, I think it’s highly likely the group will continue to produce attractive returns for investors, relative to the rest of the market, for the next six to 12 months. Dividend champion Unlike many other FTSE 100 companies, the group has also maintained its dividend to investors. The Tesco share price is on track to offer investors a dividend yield of 3.7% this year. That looks incredibly attractive in the current interest rate environment. The group is also in the process of divesting its international operations. Sales of its businesses in Thailand, Malaysia and Poland are “progressing well,” according to the latest update. The £8.2bn sale of the operations is expected to complete during the next few months.Management is planning to use some of the cash to reduce group debt. Meanwhile, £5bn is earmarked for a special dividend. Therefore, the total cash payout to investors this year could be significantly higher than the 3.7% projected above when this special distribution is taken into account. That’s why I think it could be time to double down on the Tesco share price. Over the past six months, the company has shown it can prosper in the current economic and pandemic climate.This bodes well for the retailer’s future, and there’s also the potential for large cash returns when the business sells its international operations.center_img There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Rupert Hargreaves | Monday, 12th October, 2020 | More on: TSCO Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Simply click below to discover how you can take advantage of this. See all posts by Rupert Hargreaveslast_img read more