...it's something I've actually used. Things like stress balls, pens, calculators, nylon totes, sticky notes, cheap plastic water bottles, and countless other generic swag items will be thrown away immediately, but people at least keep/use things like chapstick and USB chargers. Another consideration is that these little "office supplies" swag items do almost nothing to promote your brand or turn your employees into representatives of your company.

Although it's clearly more expensive, higher-quality swag like brand-name clothing or high-end metal water bottles with your logo are more likely to be worn/used in public and to promote your brand while engendering loyalty and pride among your employees. Think of things that your employees are spending their own money to buy, and work to put your brand on those items and have them available at a discount in your company store. Even if you sell/provide them to your employees at a small loss (i.e., employees pay 75% of cost), you're getting advertising and employee retention benefits from it.