Top 5 Popular Stocks in Japan that Offer Yutai Gifts

Yutai Gifts 株主優待 (Kabunushi Yutai) are perks that companies give to their shareholders as a form of gratitude for owning their stocks. These gifts are often tied to the product or service that the company provides. A lot of retail investors find Yutai investing appealing and there are numerous websites in Japanese that summarise and rank these Yutai offerings. I have done my own bit of research and I have come across quite a few companies that provide competitive rewards. Over the months I have created my own list of popular Yutai stocks that I would like to share with you.  

How do I receive my Yutai Gift? 

Before we get started with our top 5 list, you might be asking what is required to be eligible to receive these gifts. 

  • You will need a brokerage account in order to purchase the stocks. For guidance in opening up a brokerage account in Japan, please refer to this article
  • Purchase the stock and hold it until the relevant ex-right date (the date on which you are eligible for the gift if you are the shareholder).
  • You will receive your Yutai Gift via post (most companies have a detailed description on their website regarding the Yutai Gift timings so you will be able to check online the exact dates of when you can expect to receive your rewards.

Now, let’s get started. All share prices are based on closing prices of 16th May 2019.

(5) Skylark Holdings (3197)

skylark

Company Profile: Skylark Group runs numerous family restaurant chains in Japan. Gusto and Jonathan’s were the two restaurants that I was aware of but their brand portfolio seems quite extensive and includes a wide range of cuisines. You can find a list here.

Gift: Coupons that can be used across their restaurants. Every 6 months you will receive 3,000 JPY worth of coupons so that’s 6,000 JPY per year just in coupons which isn’t that bad (these coupons are relatively easy to sell online or at ticket shops like Daikokuya.

Minimum Shares Required: 100 shares

Investment Amount: 100 * 1868 = 186,800

(4) Japan McDonald’s Holdings (2702)

mcdonalds

Company Profile: McDonald’s needs no introduction; their burgers are widely consumed around the world and Japan is no exception. 

Gift: You get the below booklet which has 6 sheets. Each sheet has 3 coupons which can be exchanged for 1 burger, 1 side and 1 drink or dessert of your choice. I have seen people assigning different values to this coupon. Some people came up with their valuations by picking the most expensive items on the menu that they can order, which brings the monetary value of a booklet close to 7000 – 8000 JPY. I have seen more fair estimates which value this coupon at around 5000 JPY.

mcdonaldscoupons

Minimum Shares Required: 100 shares

Investment Amount: 4880 * 100 = 480,000 JPY

(3) ANA Holdings (9202) / JAL (9201) ( (I put both airline companies together as what they have to offer is pretty similar in my opinion).

jal

Ana

Company Profile: JAL and ANA are the two biggest domestic airlines in Japan and are with well established internationally.

Gift: 50% off domestic flights. Considering domestic flights can range from 20,000-50,000 JPY, you are looking to save 10,000 – 25,000 JPY on your travel fare. Similarly to other Yutai Gift tickets you will be able to easily sell them online. 

Minimum Shares Required: 100 shares (to note that the number of free tickets increases as the number of shares increase). For JAL this website (in Japanese) has a good summary of the benefits, there are also added bonuses such as additional coupons for holding the stock for 3 consecutive years.  

Investment Amount: ANA (3,750 * 100 = 375,000 JPY) JAL (3,607 * 100 = 360,700 JPY)

(2) Oriental Land Co. Ltd (4661) 

olc

Company Profile: Headquartered in Urayasu, Oriental Land runs Disney Land and DisneySea, two very popular theme parks in Chiba. In addition to its theme park business, the company also manages a number of hotels including the Disney Ambassador Hotel.

Gift:  1 free entry pass for either Disney Land or DisneySea (entry price for adults is 7,400 JPY). If you are a fan of Disney and their theme parks I could definitely see the appeal for this gift. Alternatively the coupon can also be easily sold online as there is huge demand for it. 

Minimum Shares Required: 100 shares

Investment Amount: (12,935 * 100 = 1,293,500 JPY)

(1) Aeon (8267)

Aeon

Company Profile: Aeon runs a large chain of supermarkets across Japan and Asia. If you hold their shares you will be sent their “Owner’s Card”. This will entitle you to claiming 3% cash back on your purchases made in cash or via Aeon credit cards (please note that purchases made with non-approved credit cards will not be counted) at their stores. If you regularly do your shopping at Aeon the cash back becomes quite appealing. Similarly to other Yutai gifts, you will entitled to cash back every 6 months. For example, let’s say that over the past 6 months you spent 500,000 JPY at Aeon, your cash back amount will be 500,000 * 0.03 = 15,000 JPY.  Considering the stock trades at around 2000 JPY, that’s 15,000/200,000 = 7.5% yield and we are not even including dividends.

Gift: 3% cashback card.

Minimum Shares Required: 100

Investment Amount: 1989 * 100 = 198,900 JPY

What are your top picks? Have you come across any good stocks with Yutai gifts? Please post your top picks in the comment section. Thank you for reading.

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