- Compass Diversified (CODI, Financial) announces quarterly cash distributions for Series A, B, and C preferred shares.
- Distributions are $0.453125 per share for Series A and $0.4921875 per share for Series B and C.
- Despite the ongoing Lugano investigation, CODI underscores strong cash flow generation.
Compass Diversified (CODI) has declared its second quarter 2025 distributions for its preferred shares, affirming its financial stability amidst an ongoing investigation involving Lugano Holding, Inc. CODI's Board of Directors announced a quarterly cash distribution of $0.453125 per share for its 7.250% Series A Preferred Shares, covering the period from April 30 to July 30, 2025. The payment will be made on July 30, 2025, to holders of record as of July 15, 2025.
For its 7.875% Series B and Series C Preferred Shares, CODI declared a distribution of $0.4921875 per share for the same period. These distributions will also be payable on July 30, 2025, to shareholders recorded by July 15, 2025. These preferred cash distributions are typically considered "qualified dividends" for U.S. federal income tax purposes, depending on whether they are paid from earnings and profits and if the required holding period is met.
Despite the challenges posed by the Lugano investigation, Compass Diversified highlights its diversified business model's capability to sustain robust cash flow generation. The company continues to leverage its permanent capital base to manage a diverse array of middle-market businesses effectively.
