Recent research on CoPd alloys with perpendicular magnetic anisotropy has suggested that they might be useful as the pinning layer in CoFeB/MgO-based perpendicular magnetic tunnel junctions for various spintronic applications such as spin-torque transfer random access memory. We have previously studied the effect of seed layer and composition on the structure (by XRD, SEM, AFM, and TEM) and the performance (coercivity) of these CoPd films. These films do not switch coherently, so the coercivity is determined by the details of the switching mechanism, which was not studied in our previous paper. In the present paper, we show that information can be obtained about the switching mechanism from magnetic force microscopy (MFM) together with first order reversal curves, despite the fact that MFM can only be used at the zero field. We find that these films switch by a mechanism of domain nucleation and dendritic growth into a labyrinthine structure, after which the unreversed domains gradually shrink to small dots and then disappear.