Stat boosts from items and weapons

I've started to notice that some quest rewards not only seem to offer a bonus when equipped, but also when "used". My question is about that boost.

I don't really see it. Is it supposed to be like a food item and give a visible icon under my name? When I press "c" and look at my character screen and then equip/unequip those items, the only stats I notice increasing are the ones that it comes with.

For example:

http://lorebook.lotro.com/wiki/Armour:Curugarab

It's obvious when I equip it that I get a morale boost, but does it have to stay equipped? There is a cooldown timer, but I don't understand that either.

I'd really like someone to explain all about how these items work because I want to know if it's worth keeping them to use them for some free boosts.