Compass Diversified Announces First Quarter Distributions for 2025
Compass Diversified Announces Quarterly Cash Distributions
Compass Diversified (NYSE: CODI), a prominent owner of various middle-market branded consumer and industrial businesses, has made a significant announcement regarding its cash distributions for the first quarter of 2025. The Company declared a quarterly cash distribution of $0.25 per share on its common shares, confirming its commitment to providing returns to its investors.
Details on the Common Share Distributions
The announced cash distribution on the common shares is applicable for the period ended March 31, 2025. Shareholders of record, as of April 17, 2025, can expect these dividends to be payable on April 24, 2025. This strategic decision reflects the Company’s strong performance and its focus on rewarding its stakeholders.
Quarterly Preferred Share Distributions
In addition to common share distributions, Compass Diversified has also declared distributions for its preferred shares. The 7.250% Series A Preferred Shares will receive a cash distribution of $0.453125 per share. This amount covers the period from January 30, 2025, to April 30, 2025, and is payable to holders of record as of April 15, 2025.
Series B and C Preferred Share Distributions
For those holding the 7.875% Series B and Series C Preferred Shares, the Board declared a cash distribution of $0.4921875 per share for both categories. The distribution periods are identical, covering from January 30, 2025, to April 30, 2025, and both will also be paid on April 30, 2025, to record holders as of April 15, 2025. These distributions underline the Company’s robust operational framework and commitment to maintaining favorable returns for its preferred shareholders.
Understanding the Tax Implications
Distributions made by CODI should generally be categorized as “qualified dividends” for tax purposes in the U.S. This classification applies if distributions derive from the Company's earnings and profits, contingent upon shareholders meeting required holding periods. Should the quarterly distributions surpass the Company’s earnings and profits, they will first be considered non-taxable returns of capital, subsequently shifting to capital gains if they exceed the adjusted tax basis in shares.
About Compass Diversified
Since its IPO in 2006, Compass Diversified (CODI) has executed a successful strategy geared toward owning and managing a diverse and defensible portfolio of middle-market businesses. Their focus spans across the consumer products, industrial, healthcare, and outsourced services sectors. The Company prides itself on a permanent capital base and a disciplined, long-term approach that drives sustainable value creation.
Investment and Growth Strategy
CODI employs substantial cash flows generated from its subsidiaries to reinvest in long-term growth initiatives, ensuring the company remains aligned with its mission of transparency and accountability. This re-investment strategy has supported robust returns, demonstrating the efficacy of their operational model and management expertise.
Contact Information for Investors
For investors seeking further details regarding Compass Diversified's quarterly distributions or any other inquiries, please reach out through the provided contact details:
Investor Relations
Compass Diversified
Email: irinquiry@compassdiversified.com
Media Inquiries
Email: mediainquiry@compassdiversified.com
Contact Gateway Group
Cody Slach
Phone: 949.574.3860
Email: CODI@gateway-grp.com
Contact The IGB Group
Leon Berman
Phone: 212.477.8438
Email: lberman@igbir.com
Frequently Asked Questions
What is the amount of the cash distribution on common shares?
The cash distribution on common shares is $0.25 per share.
When will the preferred shares distributions be paid?
The preferred shares distributions will be paid on April 30, 2025.
How does Compass Diversified classify its cash distributions for tax purposes?
Cash distributions are generally classified as “qualified dividends” for U.S. federal income tax purposes.
What is the purpose of Compass Diversified's cash flows?
Cash flows are reinvested to support long-term growth and financial stability across its business portfolio.
How can shareholders contact Compass Diversified for more information?
Shareholders can reach out via email at irinquiry@compassdiversified.com for investor inquiries.
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