Compass Diversified Announces Enhanced Shareholder Distributions

Compass Diversified's Quarterly Cash Distributions Overview

Compass Diversified (NYSE: CODI) has shared exciting news regarding its upcoming quarterly cash distributions for its common and preferred shares. The company's commitment to returning value to its shareholders reflects its strong performance and solid management of a diversified portfolio in the middle market.

Details of the Distribution for Common Shares

The Board of Directors has approved a quarterly cash distribution of $0.25 per share on the common shares. This distribution pertains to the quarter ending September 30 of this year and will be distributed to common shareholders on a specified date, which is sure to provide anticipated financial relief for many investors.

Preferred Shares Distribution Announcements

In addition to the common shares, the company has declared distributions for its Series A, B, and C Preferred Shares. For the Series A Preferred Shares, a distribution of $0.453125 per share has been set, and it encompasses earnings from a select period, ensuring that investors in these shares continue to see consistent returns.

Moreover, the Series B and C Preferred Shares will also receive distributions of $0.4921875 per share, underpinning Compass Diversified's overall strategy to maintain strong financial health and return on investment for its shareholders.

Tax Implications of the Distributions

It's essential to highlight the tax advantages tied to these distributions. CODI expects that all distributions for the year will qualify as “qualified dividends” under U.S. federal tax law, assuming all necessary holding periods are satisfied. This classification will benefit shareholders by potentially reducing their tax burden, reinforcing the appeal of investing in CODI.

Should any distribution exceed earnings, it will initially be treated as a non-taxable return of capital, aligning with shareholders' financial interests. CODI remains committed to transparency, ensuring that each investor is informed about the distribution's tax situations as they unfold.

About Compass Diversified

Since its inception in 2006, Compass Diversified has focused on owning and managing a diverse portfolio of middle-market businesses spanning industrial, branded consumer, and healthcare sectors. This extensive range allows CODI to benefit from varying economic climates, enhancing the resilience of the organization.

With a solid capital base and a disciplined investment approach, the company confidently steers its subsidiaries toward sustainable growth and profitability. CODI’s strategy emphasizes the importance of long-term value creation, positioning itself to deliver strong returns for its investors.

Looking Ahead - What’s Next for CODI?

As CODI continues to manage its distributions effectively, it is also paving the way for future growth. Investors are encouraged to keep a close eye on the company’s performance, which is aided by its proactive approach to recognizing market trends and adapting its operations to maximize investor returns.

The decision-making process within CODI is heavily influenced by its transparent and accountable corporate governance, fostering a culture that prioritizes shareholder interests and sustainable business practices. This dedication sets the tone for CODI's ongoing commitment to shareholder satisfaction.

Frequently Asked Questions

What are the distribution amounts for CODI's shares?

CODI has announced distributions of $0.25 for common shares and $0.453125, $0.4921875 for its preferred shares.

When will the distributions be paid out?

The common share distribution is scheduled for October while the preferred shares will also be distributed on October 30.

What qualifies as a “qualified dividend” for investors?

Qualified dividends are those paid from earnings and profits and convey certain tax benefits under U.S. law.

How does CODI's strategy benefit shareholders?

CODI enhances shareholder value through disciplined management, diversified investments, and consistent cash flow generation.

Is CODI's share distribution expected to change in the future?

While CODI anticipates maintaining its distribution levels, changes may occur depending on market conditions and company performance.

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