Our company is a cooperative that was established on February 1, 1929 under a special tax code section in the IRS Regulations. This code section allows us to pay back our profits to our customers based on how much business was done with us during the previous year.
For example, let's assume that our profit before taxes amounted to 10% of our sales volume. If you were to spend $1,000.00 with the company during the fiscal year you would get a dividend of $100.00 ($1,000 times 10%). We currently pay 30% in cash and allocate the rest as equity stock in the company. You would then get a check for $30.00 and an equity allocation of $70.00. You are then a part owner in the company and the stock allocated to you is tracked under your name.