Strategy Proposes Daily Dividend Accruals for Preferred Securities

Michael Saylor's Strategy is proposing significant changes to its dividend schedule for its preferred securities STRF, STRC, STRK, and STRD. Currently, these securities have monthly, semi-monthly, or quarterly dividend schedules, but the new plan would see dividends accrue every calendar day, including Saturdays, Sundays, and U.S. market holidays.

The accumulated amount would then be paid on the next business day, which Strategy refers to as the next evolution of its 'digital credit' products. The goal is to make these securities more like liquid cash/yield instruments by reducing price volatility and improving liquidity.

For STRC, Strategy aims to keep the price near its $100 par value through share sales above $100 and buybacks below $100. This change came after the company shifted from monthly to semi-monthly dividends, which reduced ex-dividend price drops from 49 to 36 basis points.

If approved, STRC would begin daily accruals on November 1st, 2026, with the first payment on November 2nd. Meanwhile, STRF, STRK, and STRD would switch to daily accruals on January 1st, 2027, after completing their existing Q4 2026 dividend cycle.