CU*South, a credit union service organization, paid a 4.31 percent dividend to its owners for 2018.
The CUSO’s CEO Leo Vaulin said on Monday that this payment marks the highest dividend rate ever paid out on its Class A shares. Vaulin told Credit Union Journal by email that in 2017, CU*South paid a 4.30 percent dividend. He further noted the book value of the Class A shares has climbed by more than 370 percent from 2011 to 2018.
“Not all CUSOs are designed to operate this way,” Vaulin said in a statement. “We make ownership available by pricing our shares affordably, and promoting a one-share, one-vote model of governance to ensure that both large and small credit unions are democratically represented and rewarded for their participation.”
The CUSO indicated that its Class A shares, which are offered at $50,000 each, are available to any credit union which does business with CU*South. To prevent larger credit unions from gaining too much influence, CU*South limits each credit union to buying 10 shares.
Vaulin further explained that the first share purchased represents a voting share, while the others count as non-voting shares that still earn dividends.
