What is the current dividend rate for Strategy's STRC preferred stock?

The current annual dividend rate for STRC preferred stock is 10.75%.

Why does Strategy Inc. adjust the STRC dividend rate monthly?

The monthly adjustment aims to encourage trading near STRC's $100 par value and to limit price volatility.

How long can Strategy Inc. cover its preferred dividends with its cash buffer?

Strategy Inc. has a $1.44 billion cash buffer intended for near-term dividend funding, with 74 years of coverage against its bitcoin reserves.

Home / Business and Economy / Strategy Inc. Boosts STRC Dividend to 10.75%

Strategy Inc. Boosts STRC Dividend to 10.75%

5 Dec

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Summary

STRC preferred stock dividend rate increased to 10.75% annually.
The stock's dividend is adjusted monthly to maintain near-par trading.
A $1.44 billion cash buffer is designated for preferred dividends.

Strategy Inc. Boosts STRC Dividend to 10.75%

Strategy Inc. announced another increase to its STRC preferred stock dividend rate, now standing at 10.75%. This is the fourth adjustment since the preferred stock's introduction in late July, reflecting ongoing efforts to stabilize its trading price.

The STRC, or "Stretch," is designed for investors seeking short-duration characteristics and high yield. Its dividend rate is dynamically adjusted monthly. Initially launched with a 9% dividend rate, it has seen several increases to encourage trading near its $100 par value.

In conjunction with the dividend hike, Strategy Inc. disclosed a $1.44 billion cash buffer to support perpetual preferred dividend payments. This reserve, alongside significant bitcoin holdings, aims to ensure long-term dividend sustainability.

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