Bag your share perks
DISCOUNT SCHEMES FOR SHAREHOLDERS
DISCOUNTED food, drink and hotels, M&S vouchers, reduced-price theme park entry and money off Harry Potter books are just some of the rewards available if you hold certain company shares.
A range of businesses offer freebies, discounts and extras to investors who hold their stock directly, and you may not have to invest huge amounts to bag them either.
Many investors fail to realise these benefits are available, although you should never invest purely for the perks.
ENJOY A SHARE
Helal Miah, investment research analyst at The Share Centre, said high street retailers from bookstores to clothing brands give shareholder discounts as a reward for holding their stock. “For example, Harry Potter publisher Bloomsbury offers 35 per cent off its books,” he said.
In many cases you get full perks even if you own just one share, which for Bloomsbury is currently 206p, although you also have to factor in your online stockbroker’s dealing fee, which is typically around £10.
Some platforms may also set a minimum purchase level although many, including Hargreaves Lansdown, will let you buy just one stock. Web-based clothing retailer N Brown Group, which trades at 128p a share, offers 20 per cent off its catalogue prices.
Suit specialist Moss Bros trades at 31p and also offers shareholders an annual 20 per cent discount on full-price items at its outlets. Marks & Spencer trades at 305.5p and offers discount vouchers for its stores.
With all these stocks, you qualify if you hold just one share. Miah said: “For less than the cost of a drink you could get extra discounts in your preferred retailers and own a percentage of the business.”
PERK UP
Russ Mould, investment director at online broker AJ Bell, said FTSE 100 companies, smaller firms and even some AIM-listed minnows offer shareholder perks. “BT, Next, housebuilder Persimmon, Whitbread, theme park operator Merlin Entertainments, brewer Marston’s, toy-maker Character and luxury goods firm Mulberry Group are all worth exploring,” he said.
While brewer Adnams, pub group Mitchells & Butlers and Legal & General offer benefits even if you hold just one share, others set higher minimums. Mould said: “Marston’s offers a 20 per cent discount on food and accommodation at many of its inns and taverns but you need to hold a minimum 500 shares. These currently cost around £1 each so you have to invest about £500.”
Mulberry offers a 20 per cent discount on up to £5,000 worth of purchases provided you own at least 500 shares. He added: “At £3.87 each the shares will cost you around £1,935.”
SPLASHING OUT
You need to own 100 shares in Carnival, which gives you on-board credit to use on its cruise ships, but these will cost around £4,620 at today’s prices, while for Whitbread, the minimum 64 shares now costs £2,976. “Whitbread offers benefits at its Premier Inn chain and restaurants, and a Costa Coffee gift card pre-loaded with £5,” said Mould.
Merlin entertainment owns attractions including Legoland Resorts, Madame Tussauds, Sea Life Aquariums, London Eye, Chessington World of Adventures, Thorpe Park and Alton Towers. Mould said: “Investors who hold at least 317 shares qualify for a discount code giving 40 per cent off either two adult Merlin annual passes or one Merlin family annual pass.” But given that Merlin’s stock trades at £3.42, the shares will cost you £1,083, so there may be cheaper ways of getting theme park discounts.
RIGHT PRIORITY
Mould warned that some firms insist you hold its stock directly rather than via a nominee account managed by an investment platform.
Hargreaves Lansdown senior analyst Laith Khalaf said shareholder perks are a nice bonus but should not determine where you invest. “You should only put larger sums into a stock if you believe there is a good investment story and it will prove successful over time. Share price growth and attractive dividend yields offer the best financial benefits of all.”