Dividend FAQ's
June 23, 2020

DID YOU KNOW? Equity allocations are reviewed and calculated each year based on the previous year's financial statements and with the long-term interests of the Co-op and Co-op members in mind. Rates of allocation change annually, and the amount allocated back to each member reflects their purchases as well as allocation percentages. To view our financial statements, you can access our Annual Report here.

Q: Why are there different allocation percentages for different commodities? 
A: It is common for Co-ops to allocate different percentages on different commodities. Just like you hold a membership in Pembina West Co-op, our Co-op holds a membership with Federated Co-operatives Ltd. (FCL). The dividends that we receive based on our purchases make up a majority of the funds that we are able to allocate back to you, our members. FCL pays us different rates on those purchases, depending on the commodity and therefore we weighted our allocation to reflect the dividends we received from FCL. Since FCL gives us a bigger allocation on our fuel products than our grocery products, our allocation rates reflect this.

Q: Why is my cheque smaller this year?
A: Allocation rates for this year reflect the percentages listed on the table below. We allocated the full amount as noted above, with 30% of the allocation, less withholding tax, paid out in cash. The remaining 70% went to your equity balance, which builds over time until you reach the eligibility criteria to withdraw. In previous years, your dividend cheque may have been larger due to a difference in the percentage allocated as cash (last year this split was 50/50), or due to having reached an equity ceiling. No equity ceiling was applied to this year's payments. To better understand your equity statement, please see the sample attached below.

Q: Why did I not receive a cheque this year?
A: If the portion eligible for cash was less than $10 than a cheque is not generated, the allocation is instead added to your equity balance.

Allocation Rates for 2019 purchases:

Barrhead Food Store1.0%
Mayerthorpe Food Store1.0%
Liquor Store2.0%
Home Centre1.0%
Confectionary  Gas Bar1.0%
Regular Gas/ Dyed Gas2.5%
Clear Diesel/ Dyed Diesel3.5%
Lottery/ Tobacco0.0%