Strategy Keeps STRC Dividend Steady at 12% in August

Strategy Maintains 12% Dividend for STRC in August

Strategy has confirmed that the dividend for its high-yielding preferred stock, STRC, will remain at 12% for the month of August, a decision that diverges from its typical practice of increasing dividends when stock prices fall significantly. This announcement, made by Executive Chairman Michael Saylor, comes as many investors had anticipated a potential 50-basis-point increase.

Lack of Increase Despite Stock Performance

STRC holders were hoping for a dividend boost after the stock traded substantially below its par value of $100. In July, the dividend was indeed raised by 50 basis points following a sharp drop in June, when STRC dipped to as low as $71. Following this adjustment, the stock has rebounded to around $89.46, yet it remains far from par.

Future Expectations and Company Objectives

CEO Phong Le has expressed that Strategy aims for the STRC price to stabilize between $99 and $100 over time. However, the company chose to maintain the current dividend this month, emphasizing that there is no obligation to raise it.