“We’re committed to maintaining the dividend,” said Michael Saylor, confirming Strategy’s Stretch preferred stock will stick to a 12% annualized payout for August 2026, despite STRC shares lingering nearly 11% below their $100 par value. STRC’s dividend rate has climbed steadily since its July 2025 debut at 9%, propelled by a ratchet mechanism that bumps the yield by half a percent each time the stock falls below $95.
That mechanism is designed to stabilize STRC’s price and support capital raises through the company’s at-the-market program, which funds bitcoin purchases without diluting common shareholders as much as issuing MSTR stock would. The dividend hike is now locked in, unable to reverse even if the stock price recovers a double-edged sword that has pushed the yield to a record high but failed to bring the share price back to par.
STRC closed July at $89.46, barely budging from the previous day and still stuck well below its $100 target. June saw a low of $71.25, and the stock hasn’t traded near par since May. Meanwhile, competition from Strive’s SATA preferred shares, which offer around a 13% yield with daily dividends and no underlying debt, has siphoned investor interest away from STRC.
The strategy’s semi-monthly dividend schedule, which replaced monthly payments in mid-July, aims to enhance investor appeal. Still, experts warn the ratchet has a limited number of cycles, hinting that STRC’s price struggles could persist. This follows Strategy’s broader efforts to expand bitcoin holdings without heavy dilution, as detailed in their recent sales initiative.
This content is informational and not financial advice.
