Investment Advice

The best shares to keep for freebies and perks

The best shares to keep for freebies and perks
Some businesses still provide discounts and benefits to their shareholders

These are a few of our favorites.

The days of having access to numerous benefits as a shareholder are long gone. Smaller shareholder benefits ultimately affect the bottom line, and many businesses now feel that the best way to thank shareholders is to turn a large profit and give the money back to investors in the form of dividends or share buybacks.

Legendary events include the wild AGMs held at Young and Co's Brewery. A free lunch and unlimited wine and beer were given to the roughly 2,000 shareholders each year. Since it was estimated that the company would have to pay up to 70 per person for a single share, that particular perk ended in 1986.

However, some businesses still provide their shareholders with benefits, though none are as generous as others. Some only become accessible after you've made a sizable investment, while others are only accessible to owners of a single share.

Note that not all benefits are accessible to stockholders in nominee accounts, which includes, for example, users of major online investment platforms. However, if you request the benefit, some platformslike Interactive Investor, Fidelity, and Hargreaves Lansdownwill get in touch with the business on your behalf to set it up.

Breweries and alcohol companies are surprisingly prevalent in the number of businesses that offer benefits.

Interactive Investor's head of markets, Richard Hunter, tells BFIA: "Shareholder benefits are enjoyable but not essential. They can be an extra advantage for investors who have already made an investment, but they are not enough justifications in and of themselves to make one.

Perhaps unsurprisingly, a large number of businesses that provide benefits have a retail focus and view them as a chance to interact with customers and, of course, entice them with their offerings.

Alcohol companies, including Adnams, Chapel Down, Fuller, Smith & Turner, Marstons, Mitchells and Butlers, Shepherd Neame, and Youngs, dominate the list of companies providing benefits to shareholders.

In addition, cruise lines Norwegian Cruise Line and Carnival Cruises provide discounts, as do clothing stores like Next and Mulberry.

The cruise discounts can be costly to obtain, according to Hunter: "Carnival requires a minimum of 100 shares in order to be eligible for spending credits on a reservation, which at the current share price of 18.04 equals 1,804 before any dealing expenses. Norwegian also establishes a minimum of 100 shares, which is currently equivalent to nearly £2,700.

For bookworms, this is possibly the best deal. Book lovers who have purchased at least one share (which, at today's price, would cost roughly 6.74) are eligible to receive 35% off all print books published by Bloomsbury, the company best known for publishing the Harry Potter series.

This is a partial list of companies that provide freebies, discounts, and shareholder benefits. Companies can (and do) withdraw shareholder offers, and this list is subject to change at any time.

"Before investing, investors should also confirm with the company that the benefit is still available," Hunter continues. "Some may have a time limit or be based on a calendar year.