Do you know about “Kabunushi Yuutai” (shareholder benefits)? Shareholder benefits are special perks granted by joint stock companies to shareholders who hold at least a certain number of the company’s shares on the vesting date.
In Japan, 1,521 of the 3,838 listed companies have implemented this system. It is widely used, although there is no legal obligation for companies to offer such benefits. The decision to provide shareholder benefits is left to the discretion of each company, resulting in some companies choosing not to implement the system. It has been suggested that the reason why so many companies in Japan offer shareholder benefits is due to Japan’s gift-giving culture, which forms the basis for the widespread use of these benefits. Additionally, individuals in Japan tend to hold shares directly, rather than primarily managing them through mutual funds as is common in the West.
For more information on how to obtain shareholder benefits, please refer to the following article.
To be eligible for shareholder benefits, you must hold at least 100 shares in the company, though this requirement can vary. However, some stocks offer shareholder benefits for holding just one share. While there are many such examples, today we will discuss only a few typical cases.
Joshin Denki Co., Ltd.
Joshin is an electronics retailer based in Osaka, Japan.
If you hold shares in this company at the end of September, you will receive a gift certificate worth 5,000 yen as a special benefit.
You will be surprised to learn that the current stock price is 2746 yen! (June 4 2021)
HOYA Corporation
HOYA is a leading manufacturer of optical instruments and glass for medical and semiconductor applications, with many of its products enjoying leading market shares both in Japan and overseas.
If you hold shares in this company at the end of September, you will receive three 30% off vouchers to use at Eyecity. Eyecity is a contact lens specialist.
The current stock price is 13980 yen. (June 4, 2021)
KURARAY CO., LTD
Kuraray is a major Japanese chemical company that manufactures and sells high-performance resins and textiles. If you hold shares in this company at the end of June, you can get a calendar.
The current stock price is 1129 yen. (June 4, 2021)
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