Strategy Proposes Daily Dividend Accrual for Preferred Stock

Strategy, a company led by Executive Chairman and co-founder Michael Saylor, is proposing daily dividend accrual for its preferred stock shares. The proposed change would see dividends on STRF, STRC, STRK, and STRD building up every calendar day, including weekends and holidays, and paid out on the next business day.

The goal of this proposal is to boost price stability, liquidity, and investor interest without changing the actual dividend economics. The company's board has already given the amendments the green light, but shareholder approval is still needed before anything changes.

STRC, Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, currently pays a 12% annualized dividend. The company plans to keep this rate until STRC trades consistently and healthily near its $100 stated value. As of September 24, the market data shows STRC closed at about $98.31.

This proposal is not an isolated announcement but rather a meaningful progression. Strategy had already been trying out more frequent payouts, and this change aims to make their preferred shares look more like investments that build up income every day. Daily accrual might also make them easier to price around dividend dates, which may cut down on the price swings.