Strategy holds STRC dividend at 11.5% for fourth straight month
The preferred stock remains near its $100 par value as the company balances yield stability, ATM issuance capacity, and its bitcoin acquisition strategy.
What to know:
- STRC’s dividend rate remained unchanged at 11.5% after the stock’s monthly VWAP reached $99.62, allowing Strategy to keep shares trading close to their $100 target par value.
- Maintaining STRC near par is critical to Strategy’s ability to issue shares through its ATM program, generating capital for bitcoin purchases, debt management, and other corporate financing needs.
Strategy markets STRC as a short-duration, high-yield savings alternative. The perpetual preferred stock pays monthly cash distributions, with the dividend rate reset each month to encourage trading near par value and minimize price volatility.
Although STRC has not traded at its $100 par value since May 14, STRC recently rebounded after falling as low as $97.11 on Thursday, recovering to around $99.10. The next ex-dividend date, the cutoff at which investors must own shares to receive the upcoming dividend payment, is June 15. Similar to trading patterns observed in May, STRC could briefly return to par in the days leading up to the ex-dividend date.
