The Northern Star Cooperative is a very successful Co-op. The past 25 years has seen sales grow from 5.5 million dollars in 1985 to over 43 million dollars in 2010. Due to this increase in sales, the Northern Star Cooperative has been able to reward its patrons with the retiring of all stock up to 1985 and the paying of an average dividend of 7% over the past several years. In the past 12 years the coop has paid back a second check each year in patronage retirement. In 1998, 2000, & every year thereafter, the Board of Directors voted to pay back 2-5% of all patrons stock each summer. They also voted to pay back all stock to patrons who have reached their 65th birthday and to give them 100% of their dividend in cash there after. What does this mean to you?

Example 1: If you purchase $1000.00 of product from the Northern Star Cooperative in a year, and have reached the age of 65, you would receive a cash dividend of $70.00 at the end of the year. This is based on a 7% dividend pay out.

Example 2: If you purchase $1000.00 of product from the Northern Star Cooperative in a year, and have not reached your 65th birthday, you would receive a cash dividend of $14.00 and Capital Credits (stock) in your name of $56.00. This is based on a 7% dividend pay out. The Capital Credits would accumulate each year until you reach 65 or until the Board of Directors decide to pay a portion of it back.

Cash Dividends Returned

Cash Stock Revolved