Toyota Motor is launching shareholder perks for the first time, including digital credits and motorsport event tickets, aimed at attracting retail investors. Shareholders holding at least 1,000 shares for five years will qualify for these rewards. This initiative resembles recent trends among Japanese companies to revive such programs despite criticism from global funds. Toyota’s stock has experienced a decline this year. Analysts view this move as part of a broader strategy to secure a more favorable shareholder environment.
Toyota Motor Corporation is set to introduce shareholder perks for the first time to attract retail investors. This initiative includes offerings such as digital credits and entry into a draw for tickets to motorsport events, aligning with recent trends among Japanese companies to enhance shareholder benefits.
Investors who possess at least 1,000 shares for a duration of five years will receive credits valued at ¥30,000 (approximately $200) for the Toyota Wallet app. Additionally, qualified shareholders can enter a draw for races at Fuji Speedway scheduled later this year. According to a spokesperson for the company, this represents the inaugural introduction of such a benefit program.
According to Yugo Tsuboi, chief strategist at Daiwa Securities Group, “Toyota may be looking to attract more retail shareholders” focused on long-term holding. He noted that the significance of a well-respected company like Toyota launching this initiative could inspire similar actions from other firms, which he believes could positively impact Japanese stocks overall.
Toyota’s announcement coincides with a trend among Japanese companies to reinstate shareholder perks to attract retail investors, though this practice has faced criticism from some global funds that do not benefit from these programs. Notably, Kura Sushi recently announced meal vouchers for shareholders, and Rakuten Group offered a year of free mobile plans in December. Following these announcements, both companies experienced substantial increases in their share prices.
This year, Toyota’s shares have decreased by 11%, contrasting with a minor 2% drop in the benchmark Topix index, a situation attributed to a stronger yen and concerns regarding potential U.S. tariffs. Julie Boote, a senior analyst at Pelham Smithers Associates, remarked, “After last week’s announcement of a more independent board of directors, this is the second step they are taking to secure a friendlier AGM in June.”
In conclusion, Toyota Motor Corporation’s introduction of shareholder perks marks a significant initiative aimed at engaging retail investors and enhancing long-term shareholder loyalty. This trend reflects a broader movement among Japanese companies to attract retail shareholders through added incentives. As companies like Kura Sushi and Rakuten Group have demonstrated, such programs can effectively boost share prices and investor interest.
Original Source: www.japantimes.co.jp
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