August 27, 2008 | posted by Pam Atherton in Investments |

When many popular retail stocks are down more than 50 per cent on last year’s highs, the goodies  that some companies continue to provide may bring some comfort to long suffering shareholders.
 
Some companies will require you to spend a certain amount of money before granting a perk, while others require you to hold a  minimum number of shares.
 
Most shareholder perks attach to stocks in the retail and travel sectors. For example, Dobbies Garden Centres offer 10 per cent off garden products, while for those with a sweet tooth, 200 Thorntons shares will generate £34 worth of vouchers to be spent at the chocolate retailer. Marks & Spencer hands out vouchers.
 
Investors in Aga Foodservice Group must spend £500 or more in Aga, Fired Earth or Divertimenti shops before they qualify for a 10 per cent discount.
 
British Airways knocks 10 per cent off when investors book flights online, while Holidaybreak gives 10 per cent discounts on its holiday accommodation. Eurotunnel shareholders can obtain 30 per cent 
 off return fares when taking their car to the continent.
 
Elsewhere, bibliophiles can obtain 35 per cent off all books published by Bloomsbury Publishing. The Restaurant Group takes 25 per cent off the cost of a meal at Frankie & Benny’s, Chiquito, Garfunkel’s, Blubeckers and Edwinns restaurants.
 
But the catch is that some companies don’t offer these perks to shareholders who hold their stock in brokers’ nominee accounts, which will also affect most people who hold shares directly within ISAs.
 
This unfairness has long been a bugbear for private investors. But as most investment advisers regard shareholder perks as an anacronism and not a reason to invest in a particular share, there has been little incentive for a trade association, such as APCIMS to lobby against it.
 
Certainly, most shareholder perks attach to retail stocks, many of which have been severely hit by the economic downturn, so such goodies should not encourage you to invest, although they might tip the balance in favour of holding onto existing shares.
 
For more on shareholder perks, visit Hargreaves Lansdown’s guide to perks at: 
 
http://www.h-l.co.uk/shares_and_stock_markets/shareholder_perks/action/list.hl