MicroStrategy Proposes Daily Dividends to Support Price Stability

MicroStrategy, formerly known as Strategy, has proposed daily dividends for its preferred shareholders holding STRF, STRC, STRK, and STRD. This would allow investors to earn cash income every calendar day, including weekends and holidays, with payments made on the next business day.

The total return would remain unchanged, but the payment structure is being altered. The company aims to support price stability, liquidity, and demand through this proposal.

STRC currently pays a 12% annual dividend on its $100 stated value, which translates to around $12 per year for an investor holding one share. Daily dividends would spread this income across smaller, more frequent payments, making STRC more attractive to investors seeking regular income.

MicroStrategy's preferred shareholders sit ahead of MSTR holders in the company's capital structure and must be paid before common shareholders receive anything. This distinction is becoming clearer as the difference between the two products grows.