Stability and Investor Confidence: Compass Diversified Hldgs Lowers Payouts with Growing Earnings
Portfolio Pulse from Benzinga Insights
Compass Diversified Hldgs (NYSE:CODI) will distribute a dividend payout of $0.25 per share on July 27, 2023, equating to an annualized dividend yield of 4.64%. The company's dividend per share has decreased from $1.44 to $1.00 from 2019 to 2022, while its earnings per share have increased from $-0.63 to $2.21 in the same period. This suggests a strategic decision to reinvest profits into the company's operations.
July 27, 2023 | 3:06 pm
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Compass Diversified Hldgs has decreased its dividend per share while increasing its earnings per share, suggesting a strategic shift towards reinvestment.
The decrease in dividend per share despite an increase in earnings per share suggests that Compass Diversified Hldgs is prioritizing reinvestment of profits into its operations. This could potentially lead to long-term growth, but may disappoint income-seeking investors in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100