Compass Diversified Announces Q3 Distributions for Preferred Shares
Compass Diversified Declares Q3 Cash Distributions
Compass Diversified (NYSE: CODI), a company known for owning leading middle-market businesses, has proclaimed its third-quarter cash distributions for its preferred shares. This announcement reflects the company’s commitment to delivering value to its shareholders.
Details of the Cash Distribution
The Board of Directors has approved a cash distribution of $0.453125 per share for the 7.250% Series A Preferred Shares. This distribution pertains to the time frame from July 30, 2025, to October 30, 2025, and is scheduled to be disbursed on October 30, 2025, to all registered holders of these shares as of October 15, 2025.
Series B Preferred Shares Distribution
In addition, a cash distribution of $0.4921875 per share has been declared for the 7.875% Series B Preferred Shares. This distribution also spans the same period and will be payable on October 30, 2025, for shareholders registered by October 15, 2025.
Series C Preferred Shares Distribution
Moreover, the Board has announced a similar cash payout of $0.4921875 per share for the 7.875% Series C Preferred Shares. Like the other distributions, this amount is applicable from July 30, 2025, to October 30, 2025, and payable on the latter date for shareholders on record by October 15, 2025.
Tax Implications of Distributions
The cash distributions made by Compass Diversified are generally considered "qualified dividends" under U.S. federal income tax rules, given they are derived from "earnings and profits". However, for holders, any amount in excess of earnings and profits is recognized first as a non-taxable return of capital up to the holder's adjusted tax basis in the shares, with subsequent amounts treated as capital gains.
Company Outlook and Corporate Strategy
As Compass Diversified continues to navigate the market, its strategic acquisitions of middle-market firms have positioned it uniquely. While the company is focused on enhancing shareholder value through dividend distributions, it also keeps a watchful eye on future performance, striving for sustainable growth. CODI's ability to adapt to changing market dynamics remains a cornerstone of its strategy moving forward.
Frequently Asked Questions
What are the distribution amounts for Compass Diversified's preferred shares?
The amounts are $0.453125 for Series A, and $0.4921875 for both Series B and C, payable on October 30, 2025.
How often does Compass Diversified pay distributions?
Compass Diversified typically announces quarterly cash distributions for its preferred shares.
Are the distributions subject to taxes?
Yes, generally they qualify as "qualified dividends" under U.S. federal tax laws, depending on earnings and profits.
When are the record dates for these distributions?
The record date for the distributions is October 15, 2025.
What is the significance of the preferred shares for investors?
Preferred shares offer investors fixed dividends and typically have priority over common stock in the event of liquidation, making them a stable investment choice.
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