Strategy Raises STRC Dividend to 10.75% as Stock Trades Below Par
Strategy (MSTR) on Monday increased the dividend on its STRC preferred series by 25 basis points to 10.75%, marking the fourth hike since the late-July IPO.
STRC, nicknamed “Stretch,” is a perpetual preferred stock designed for short-duration exposure with high yield. Dividends are paid monthly in cash, with rates adjusted to encourage trading near the $100 par value and manage volatility.
Originally priced at $90 with a 9% dividend, STRC received two prior hikes to 10.25%, yet market declines kept it below par. A third increase briefly lifted the stock to $100, but drops in bitcoin and Strategy’s common stock pushed STRC to about $90 in November, prompting this latest adjustment. At press time, it traded at $98.43.
The dividend hike coincides with a $1.44 billion cash reserve for perpetual preferred payouts. Total annualized obligations across all perpetual preferred shares are roughly $800 million. With $59 billion in bitcoin reserves, the company reports 74 years of dividend coverage, though near-term payments will rely mainly on the cash buffer.
