Patronage dividend

A patronage dividend is a financial return given to members of a cooperative or mutual organization based on their level of participation or patronage. Essentially, if you buy goods or services from the cooperative, a portion of the profits is returned to you as a dividend, proportional to your purchases. This rewards members for their loyalty and supports the cooperative’s mission. Unlike traditional dividends from for-profit companies, patronage dividends emphasize community and member benefit over shareholder profit.