UK retailer Marks & Spencer (LON:MKS) is to offer shareholders gift cards instead of traditional dividend pay-outs.
The company, which is 30% owned by private investors, said the initiative was a new approach to rewarding investors.
Amanda Mellor, Marks & Spencer's (M&S) group secretary and head of corporate governance, said: "Our private investors are some of our most loyal customers and we're continually looking at how we can best engage this important group of stakeholders."
Last year M&S paid a dividend of 17p at a cost of £274mln. After a 0.2p interim increase, the yield is 3.4% based at a current share price of 505p.
A spokesman from Hargreaves Lansdown said: “Shareholders haven’t had a happy ride in share price and one thing that underpins M&S is its high yield.”
The scheme will invite 190,000 of its UK private investors to purchase an M&S Shareholder Card from their dividend payments. The cards can be loaded with up to £1,000 at a 10% discount to face value and will operate much like a gift card, offering credit for both UK stores and online.
M&S shares have performed broadly in line with the FTSE 100 index over the last 12 months in part due to the food business, which has performed well.
Mellor said participation in the scheme is optional and those who do so will continue to receive the current shareholder discount vouchers mailed every January.
The scheme will come in ahead of next dividend payment in July.
With M&S leading the way, registrar Equiniti said it hoped it would be able to extend the scheme to other British companies.
M&S shares are up 3.2% year-on-year; that compares to the FTSE 100 index's rise of 2.4%.