The ‘hidden’ perks of share ownership

Imagine if your portfolio offered more than just potential returns and dividends. What if it came with free hotel breakfasts, hefty book discounts or even help with your bills?

Welcome to the world of shareholder perks - genuine, money-saving benefits available to anyone who owns a slice of certain companies.

From hospitality to retail, publishing and even self-storage, companies are finding smart ways to turn shareholders into loyal customers - offering everything from priority bookings to exclusive discounts in exchange for ongoing investment.

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The ultimate win-win. 

Usually when something sounds too good to be true, it is. Not in this case.
 
Shareholder perks aren’t just acts of goodwill - they make good business sense. Companies use them to encourage investors to stay the course when markets wobble - as they so often do.

And, in return, investors enjoy genuine freebies. It’s like an exclusive members-only club. All of which helps to create emotional ties, deepen brand loyalty and turn passive investors into active brand ambassadors. Referrals are priceless.

Is there a catch?

Not a catch as such, but there are some provisos. First you need to meet the company’s minimum share threshold to qualify. Then there’s the paperwork, as you need to register your holding and there may be additional forms to complete.
 
Of course, a perk should never be the reason you invest. As with any investment, do your research. Then, if the numbers add up, you happen to love the brand, and you’re prepared to do the legwork… why not reap the rewards?

Not all shareholder perks are equal

When it comes to shareholder perks, some companies are more generous than others. While many rewards can feel like genuine thank-yous for backing the business, others are harder to justify.

Take Bloomsbury Publishing, for example. For little more than £5, you can unlock a 35% discount on print books - not bad if you're a regular reader. Likewise, Big Yellow Storage offers a 10% discount on storage and packing supplies for just over £10, with further deals layered on top of their usual promotions.

At the other end of the spectrum sits Next, where you’d need to invest a staggering £12,570 to qualify for 25% off just one full-price item, once a year. Telecom Plus also sits at the higher end, offering ongoing savings on household bills - but only if you’re prepared to invest over £30,000.

Others fall somewhere in between, with perks that lean more towards lifestyle than everyday utility - like onboard cruise credit, luxury leather discounts, or pub and hotel savings.

What’s the lesson from all this? The real value of a perk depends on how much (and how often) you’d use it.

•  For more information, see our Shareholder perks and benefit page.

*Based on share price at time of publication

How to access your perks if you invest with Fidelity

If you meet the share threshold, simply log in to your Fidelity account, go to ‘Profile → Preference centre’, and opt in under ‘Shareholder voting & information’ to activate your Broadridge UK Voting and Information Rights Service.

Once you’ve set up your Broadridge account and submitted proof of your holdings, each company’s registrar will confirm your eligibility and send your discount codes or vouchers on their normal mailing cycle (Broadridge doesn’t manage the perks on your behalf - this process is all managed between the company and the registrar).

For full eligibility details, deadlines and registrar contacts, see Fidelity’s Shareholder Perks and Benefits page.

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Important information - investors should note that the views expressed may no longer be current and may have already been acted upon. Reference to specific securities should not be construed as a recommendation to buy or sell these securities and is included for the purposes of illustration only. Direct shareholdings should generally form part of a well-diversified portfolio of other investments. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.