Should I buy Tesco shares today at 224p?
Tesco (LSE: TSCO) shares have delivered a pretty dull performance so far this year. The share price of the UKs largest supermarket has dropped by almost 10% since 15 February, when the company completed a 5bn cash return to shareholders after the sale of its Asian business. City analysts expect the supermarkets growth to flatten out after last years pandemic performance, which saw sales surge. However, Im tempted by Tescos reliable cash flows and big market share. Im also interested in the 4.5% dividend yield  I think this could be a good passive income stock. 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 well show you something that could be key to unlocking 5Gs full potential...  Keeping last years gains  Supermarkets experienced a massive surge in demand last year. The combination of lockdown, working at home, and the closure of the hospitality industry meant that households suddenly needed more of everything. All at once. This unprecedented situation lifted Tescos group sales by 7% last year, while its UK and Ireland sales were nearly 9% higher. Sales were never likely to keep rising at this rate, but I was hoping that Tesco would be able to hold onto last years gains. In its June trading update, Tesco said that retail sales for the three months to 29 May rose by 1% compared to 2020, but were 8.1% higher than in 2019. This suggests to me that Tesco has held onto the extra business it gained last year and is now returning to more normal trading. That seems like a decent result to me. I think the big challenge for new CEO Ken Murphy will be to maintain the companys momentum. Tesco is already by far the UKs largest supermarket, with a market share of 27%. I dont think theres any risk of second-placed Sainsbury (15% share) catching up. Meanwhile, the extra challenges created by the pandemic will hopefully soon start to ease. Murphy has big shoes to fill after the success of turnaround CEO Dave Lewis. So far, all we know is that he plans to make shareholder returns a priority and will not take too many risks chasing growth. Given the companys large size, this strategy makes sense to me. But rivals Morrisons and Sainsbury are both in good shape too, in my view. They wont stand still. Discounters Aldi and Lidl are also continuing to open new UK stores, adding to the competition. Murphy expects Tescos profits to return to 2019/20 levels this year. That suggests that the groups operating profit will rise by around 20% this year, as the extra costs caused by Covid-19 start to fall away. City analysts expect Tescos dividend to rise by around 9% to 10p this year, giving the stock a forecast yield of 4.5%. My sums suggest this payout should be comfortably covered by the groups cash generation. This might open the door for a bigger dividend increase, or perhaps share buybacks. In my view, Tesco shares look cheap at current levels. Although the companys growth is likely to slow, I think theres enough upside potential from current levels to make the stock a decent investment. Id be happy to buy the shares at 224p today.