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Strategy keeps STRC preferred dividend at 12% in August
CEO Phong Le reiterated the goal for STRC to trade at $99 to $100 over time, but the company is not raising the payout this month despite prior dividend increases when STRC traded below $100 par.
Strategy, led by Executive Chairman Michael Saylor, is keeping the dividend on its high-yielding preferred stock STRC at 12% for August, CoinDesk reported.
The company has previously raised the STRC payout when the shares spent enough of the prior month trading substantially below par, which it sets at $100. CoinDesk notes that this month does not follow that pattern, with Strategy under no obligation to increase the dividend choosing to hold it steady.
CoinDesk said the latest decision comes as STRC remains well below its $100 par level. The preferred shares were reported at $89.46 after a July rebound that followed a June plunge to as low as $71.
CEO Phong Le said Strategy’s corporate objective is for STRC to trade at $99 to $100 over time, according to CoinDesk. The outlet added that holders will not see any dividend increase in August even as expectations had ranged up to a potential 50 basis point hike.