Shareholder perks

marathon_man_3

I found this list on the internet which, although not up-to-date, was of interest:
http://www.hl.co.uk/shares/shareholder-perks/shareholder-perks

Is it worth buying the minimum shares, in some cases, to reap the benefits available? Have others specifically invested for the perks?

Living in the Shetland Islands, at the moment anyway, there is no way that I would gain from having shares that would get me discounts in going though the Channel tunnel so I'll avoid that one.

Freecall

I expect that you will get responses saying that you should never buy shares for the perks but only buy for the investment returns…..but I disagree.

I hold a number of shares purely for the perks and this is why.

The price of any given share is a reflection of the view of the entire market of its value. This will include all the tangibles such as dividend return P/E ratio and a hundred other metrics. It will also include intangibles such as market sentiment and so on. The point is that the price is a ‘pure’ reflection of value.

But for any listed share the vast majority of shares will be held by institutions which cannot benefit from the perks. This means that they do not form part of this value calculation.

Therefore (assuming that the perks have a value to you) they represent additional value over and above the public value of the holding.

My best perk share to date is Carnival PLC which gives me £150ish each time I cruise on one of the group’s ships. We do this around 4 times a year hence £600 on top of any value that the underlying shares generate (dividends etc.). We hold the minimum of 100 shares which at today’s price are valued at around £2,530. That’s over 20% added value.

In fact, the company could go bust and I would still be ahead on what I have received in benefits over the years.

Of course, as with any incentive, you have to view its value to you personally but as I say I am a great fan.

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marathon_man_3

Thanks.
In your case, I would suggest that you are most definitely getting worthwhile returns from your investment.

FLAPJACK

I inherited shares in SSE (the only ones I have) from my father.

When I got them I made the decision (sentimentally) to keep them....it didn't cost me anything to get them etc.

Over the years I have reaped the reward of that decision as the dividends have gone a longway to paying towards my winter heating bill....this year the pay out (in two payments) has hit almost £800!, obviously this "income" cannot and is not guarenteed either.

I like the perverse fact that a energy company is paying for my energy during the winter.....or most of it anyhow.

The value of the shares has risen too since I accquired them, I know my father obtained them for free years ago as he was a customer of Southern Electric when they were taken over by Scottish.

The value was 50p a share at the start, today they are £14.00....up and down like a yo-yo though.

I would only invest in shares if you can afford to lose the money and don't depend on them making money.....and certainly shares are a
l-o-n-g term investment too.

jimjames

I bought Eurotunnel shares 16 years ago for the perks. Performance has not been great but the perks have more than made up for it over that time.

anna42hmr

I bought Disneyland Paris shares several years ago as If you held 20 shares you can apply for their members for free. If I recall correctly only cost me £100 give or take but as we go to Disney Paris annually saved a fortune as get 10 -20% discounts in resorts on food, shopping, drinks, spa, etc plus can get discounts on hotel/park tickets/ annual passes as well as 10% discount on Disney stores in the uk.

Defiantly saved me a fortune over the years, though when my current membership expires ( as you have to apply every 2 years and provide up to dat share ownership proof) as they are increasing the number of shares needed from 20 to 100 so will have to review and see how much will cost to get an extra 80 shares and if worth it etc.

atush

I don't buy for the perks, but I keep it in mind when selling/holding.

I bought BA as a penny share after 9/11 when everyone was afraid to fly. I doubled my money and took half out. It doubled again and I took another half. In the end, I kept enough shares for the 10% off flights. So, the perk effected me taking out remaining profits (were still worth double what I paid before merging).