Skip to Main Content

Watch-it-Wednesday: What is a Dividend?

"A [dividend is a] distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield." -Investopedia

 


 

Many credit unions are able to offer high dividends to their membership (that's you) because the members own the credit union - not shareholders. Dividends, then, act as a direct reward to credit union members, as a "thank you" for their membership. These dividends often come in the form of high-interest in savings accounts, typically compounded daily and credited to members' accounts monthly.

More information.

You can check out 3Rivers current rates here.

Related articles
Return to the top of the page