Co-op cuts dividend to 7m members

TOUGH trading and investment across the business has prompted The Co-operative Group, the mutual retail, pharmacy, funerals and farms operator to cut its dividend payout to its seven million members.  

The Co-op dividends, which include a payout in line with members’ trade with the business, dropped from 1p to 0.5p per pound spent. It is the first time in six years there has been a reduction.

A spokesman for the Manchester-based group said: “The Co-operative dividend is paid out twice a year and its payment is determined by our members.

“In light of the continuing uncertain economic situation, our members agreed at the recent half year general meeting to take a prudent approach with regards to this year’s interim dividend payment.

“The full year dividend for 2012 will be declared at the annual general meeting in May next year when this year’s full financial performance will be known. “

Amid tough trading in its retail business the Co-op has continued to invest throughout the economic cycle and thanks to a deal this year to buy 632 branches from Lloyds Banking Group, will be a much bigger player in the financial services sector.