Sunday, 15 December 2013

Santa shareholder benefits

The Wall Street Journal recently published a good article on stocks with shareholder perks. It identified Ford shareholders as the biggest winners with the largest savings potential. Shareholders are offered near employee prices provided they own a minimum of 100 shares (last share price $16.50) for at least the past 6 months. Shareholders only pay 4% above the employee price saving shareholders hundreds or even thousands of dollars on the purchase price. Unfortunately this trend of extra shareholder benefits has decreased over time. The WSJ article talks about how Disney used to give shareholder discounts to its theme parks and how Starbucks no longer slips gift cards into annual meeting reports.

But what about here in Australia? The trend is similar to the US. Coles famously closed down their shareholder discount cards a number of years ago which outraged retail investors especially since it offered discounts of up to 10% on weekly shopping expenses. It is now seen as normal to concentrate on shareholder returns rather than benefits. Thankfully there are some companies out there that reward shareholders with other benefits, though they tend to only be in the entertainment and retailing industries.

Even a bank offers a shareholder discount
A number of banks used to offer discounts on home loans but now it is only NAB a shareholder with over 500 shares will see their annual credit card fees waived. Who said all banks were greedy! Unfortunately NAB have cancelled their shareholder package home loan discontinued in August 2012.

Funnily enough AMP is not a bank but it does offer home loan discounts. As a shareholder you can receive a discount of up to 0.85% on loans from $100,000-$499,000 and up to 1% off variable loans above $500,000.

Blackmores offers shareholders an order form with 30% off recommended retail prices though it needs to be for personal use only.

For the travellers out there Amalgamated holdings provides some of the best benefits. They even provide a shareholders benefits pamphlet (see below). Holders of 500 or more shares of the company get 10% off Rydges and QT hotels. Shareholders can also pay $10.50 for tickets at Greater Union and Birch Carroll and Coyle cinemas and get 10% off sky lift tickets at Thredbo.



Ardent Leisure offers similar value to shareholders with at least 2,000 shares. An investor benefits card is mailed out to newly eligible investors within a few weeks of becoming an investor. Investors gets discounts to Dreamworld and can save up to 50% off at SkyPoint at the top of Q1 on the Gold Coast.

Lastly for the gamblers and travelers out there Echo Entertainment offers shareholders 10% off rooms at The Star in Sydney, Jupiters Casino on the Gold Coast, Treasury casino in Brisbane and Jupiters Townsville. The shareholder benefits card also gives holders 10% off food and drinks at the majority of restaurants.

If you can't find that last minute gift maybe one of these vouchers can help you out, Merry Christmas!

Jason



The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.