Investors who are not exactly investing in ETFs or funds can profit from their shares in a wide variety of ways. While price gains and dividends are probably the best-known forms to keep shareholders happy, non-cash dividends are less well-known and common. They can still be worthwhile for some.
From chocolate to pajamas
Probably the best-known non-cash dividend is the chocolate case from Lindt & Sprüngli. Every year, shareholders receive an exclusive case filled to the brim with the Swiss company’s melt-in-the-mouth chocolates. It contains a colorful mix of bars, snacks and chocolates, and of course the latest creations from the company. The shareholder’s case weighs just under four kilograms and contains the equivalent of around 150 euros. Unfortunately, there is a huge catch: the case is not for small investors, because a single share certificate, which is required for the dividend in kind, is currently traded for the equivalent of around 11,000 euros.
Also quite well-known among the hunters of dividends in kind is Calida’s pajamas. The company provides its shareholders with a high-quality pair of pajamas every year. For this, you have to own at least 20 shares in the company, but at a current price of around 50 euros, they are a good deal cheaper than those of Lindt & Sprüngli. The annual purchase of Calida pajamas is therefore available for an investment of around 1,000 euros. Depending on the value of the pajamas, this gives a dividend yield of about 10%. The Swatch Group AG gives its shareholders a special model of its famous watches once a year.
Discounts and exclusive tours
At Sixt SE or Accor SA, there are discounts for shareholders. For example, owners of the car rental company get a special shareholder rate that promises a 20% reduction on the regular price. The hotel chain, on the other hand, grants Gold status for two years to those with 50 or more shares in their portfolio, giving them special privileges when staying at its hotels. Those who like to go on cruises should add Carnival Cruise shares to their portfolio. Depending on the cruise and the duration of the trip, you can get free on-board credit if you have more than 100 shares in your portfolio.
Luxury manufacturer LVMH maintains a special members’ club for its shareholders, which offers discounts on Moët and Co. spirits, as well as exclusive free visits to production facilities, champagne cellars and other events. Shareholders of the Zoological Garden in Berlin or Bergbahnen Engelberg-Trübsee-Titlis AG also receive discounts or even free admission for their visits.
Receiving a dividend in kind is not always easy
As you can see, dividends in kind are widespread, especially with Swiss shares, and this can definitely become a problem for us Germans. As a rule, you have to be registered as a shareholder in the Swiss share register, which is not possible at every custodian bank, or only for an additional fee. With a neobroker like Scalable Capital* or Trade Republic* such a registration is not possible at all. In addition, a dividend in kind, like the regular dividend, is a voluntary benefit of any company and can be discontinued at any time.
| Company | Dividend in kind |
|---|---|
| Accor SA | Gold status for a maximum of two years |
| Bergbahnen Engelberg-Trübsee-Titlis AG | Free rides and discounts |
| Calida Holding AG | Pajamas once a year |
| Carnival Cruise Line Inc. | additional on-board credit |
| Lindt & Sprüngli AG | Shareholder case with chocolate |
| LVMH | Shareholder Club member exclusive discounts and visits |
| Sixt SE | Shareholder rate with discounts |
| Swatch Group AG | Once a year a special watch |
| Zoologischer Garten Berlin AG | Free admission for life |
For those who want to get even more out of their shares, there is the Annual General Meeting with a buffet or other free form of catering! 😉
Keyfacts
- besides regular dividends there are dividends in kind
- these can be small gifts, discounts or products
- but their receipt is always linked to conditions
