Compass Diversified Makes Notable Distributions for Investors
Compass Diversified Announces Strong Cash Distributions
Compass Diversified (CODI), known for its strategy of owning and managing leading middle market businesses, has recently made headlines by declaring quarterly cash distributions on several series of preferred shares. This announcement reflects the company's robust financial health and operational efficacy, particularly in managing diversified assets through effective cash flow generation.
Details of the Quarterly Distributions
The Board of Directors at CODI has set a quarterly cash distribution of $0.453125 per share for its 7.250% Series A Preferred Shares. This distribution will cover the period from April 30 of the current year until July 30. The distribution is scheduled to be paid on the latter date to all shareholders recorded as of July 15.
Breakdown of the Preferred Share Distributions
In addition to the Series A Preferred Shares, CODI is also distributing $0.4921875 per share on its 7.875% Series B and Series C Preferred Shares. Similar to the Series A, these distributions are for the same payment period, highlighting the company's commitment to return value to its shareholders.
Tax Implications for Investors
It is noteworthy that the cash distributions from CODI are expected to qualify as "qualified dividends" according to U.S. federal tax regulations, assuming they are paid from earnings and profits. This classification can provide advantageous tax treatment for investors. However, if distributions exceed earnings and profits, they may be categorized as non-taxable returns of capital.
About Compass Diversified
Since its inception in 2006, Compass Diversified has adeptly navigated the complexities of the market, investing in a varied portfolio of middle-market enterprises across key sectors including consumer goods and industrial services. The company's disciplined investment approach and commitment to leveraging long-term capital have been core to its success in fostering sustainable growth and maximizing value for stakeholders.
The Strategy Behind Success
Compass Diversified employs a strategic approach to enhance the financial and operational flexibility of its subsidiaries. By maintaining controlling interests, the company effectively influences cash flow and drives long-term value creation. With a focus on transparent operations and accountability, CODI consistently delivers strong returns to its investors.
Contact for Investor Relations
For further inquiries, interested parties can reach out to Compass Diversified directly through their investor relations email: irinquiry@compassdiversified.com. Stay informed about the company's activities and investment opportunities by connecting with them.
Frequently Asked Questions
What is the amount of the preferred share distributions announced?
The quarterly cash distribution announced for Series A is $0.453125, with Series B and C both at $0.4921875 per share.
When will the distributions be paid?
The distributions are set to be paid on July 30 to shareholders of record as of July 15.
Are the distributions considered qualified dividends?
Yes, they are expected to be classified as qualified dividends for U.S. tax purposes if paid from earnings and profits.
How does CODI maintain its business operations?
CODI manages a diverse range of middle-market businesses, maintaining a strong capital base and strategic ownership to foster sustainable growth.
Who can I contact for more information on CODI?
You can email the investor relations team at irinquiry@compassdiversified.com.
About The Author
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