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Compass Diversified Announces 4th Quarter 2010 Dividend
January 5, 2010: OK, strictly speaking Compass Diversified (ticker: CODI) is not a Business Development Company. CODI is not really a lender but a buyer of middle market businesses, what used to be called a mini conglomerate. Unlike other business buyers,though, CODI finances all its acquisitions internally, rather than having each portfolio company borrow from third party lenders. Nonetheless, we track the company because it is i) involved in the middle market which is the bread and butter business of the BDC industry, ii) pays a regular quarterly dividend...

...All this to say that the Compass dividend seems safe for 2011, barring a major catastrophe (the risk of which is decreased by its current diversification into 8 platform companies). At today’s stock price of $17.7, the $1.36 annual dividend yields 7.7%. Will there be a dividend increase in the future ? We have no idea, but we’ll be listening on future Conference Calls to get a sense of management’s thinking.

I'll be listening too.

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