Strategy Inc. confirmed its 12% annual dividend rate on STRC preferred stock for August 2026, even though the shares closed July over 10% below their $100 par value.
On July 31, STRC shares ended at $89.46, down slightly that day. Despite trading below par, the fixed $12 annual dividend translates to an effective yield of around 13.41% at this price.
The company’s $3.75 billion cash reserve covers approximately 2.1 years of preferred dividends and interest payments, providing a buffer as management navigates market conditions. Strategy repurchased nearly 289,000 STRC shares below par recently but still holds $975 million in buyback authorization.
Executive Chairman Michael Saylor highlighted the product’s twice-monthly dividend as a way to “stretch your income” on August 1. However, the dividend rate won’t increase simply because the shares trade below $100 anymore. A policy update at the end of June means Strategy now weighs multiple factors market price, credit spreads, Bitcoin volatility, and cash reserves before adjusting dividends.
The company said it will keep the 12% dividend until STRC demonstrates “sustained, healthy trading” near par, though no guarantee of a price rebound was given. This approach helps prevent rising cash payouts amid ongoing efforts to boost demand. Each 50 basis point hike would add significantly to annual cash costs.
This content is for informational purposes and does not constitute financial advice.
