Strategy is holding the dividend on its high-yielding preferred stock, STRC, at 12% for August, rather than raising it as the company customarily has when the stock trades sizably below its $100 par value. STRC closed July at $89.46, a level still significantly below par.
Holders of Strategy's high-yielding preferred stock STRC will not see a dividend increase in August, as the company, led by Executive Chairman Michael Saylor, holds the payout at 12%. STRC investors may have been expecting as much as a 50-basis-point hike, since Strategy has customarily raised the payout whenever the stock traded sizably below its $100 par value for the month.
As recently as July 1, Strategy had lifted the dividend 50 basis points following June's plunge in STRC to as low as $71. That hike, together with Strategy's sale of some bitcoin to fund dividends and a bit of stabilization in the price of bitcoin, helped STRC bounce in July to $89.46, a level still significantly below par.
CEO Phong Le yesterday said Strategy's Corporate Objective is for STRC to trade at $99 to $100 over time. Nevertheless, the company is under no obligation to raise the dividend and chose not to do so this month.
Source: CoinDesk
Trading involves risk.
Risk Disclaimer
