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Dividend
DatesDividend reinvestment plansBenefit to shareholdersConsReliability of dividendsCooperativesTrusts
DatesDividend reinvestment plansBenefit to shareholdersConsReliability of dividendsCooperativesTrusts
Cooperatives
Cooperative businesses may retain their earnings, or distribute part or all of them as dividends to their members. They distribute their dividends in proportion to their members' activity, instead of the value of members' shareholding. Therefore, coop dividends are often treated as pre-tax expenses.Consumers' cooperatives allocate dividends according to their members' trade with the coop. For example, a credit union will pay a dividend to represent interest on a saver's deposit. A retail coop store chain may return a percentage of a member's purchases from the coop, in the form of cash, store credit, or equity. This type of dividend is sometimes known as a patronage dividend or '''patronage refund''', as well as being informally named ''divi'' or ''divvy''.