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Strategy Inc. Boosts STRC Dividend to 10.75%
5 Dec
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. 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.
