Holders of Strategy’s (MSTR) high-yielding preferred stock STRC will not see a dividend increase in August.
No hike this month
Led by Executive Chairman Michael Saylor, Strategy is maintaining the current 12% dividend on the shares.
Investors may have been expecting as much as a 50-basis-point hike, since the company has customarily raised the payout anytime the stock spent enough of the month trading sizably below its par value of $100.
As recently as July 1, Strategy lifted the dividend 50 basis points following June’s plunge in STRC to as low as $71.
What lifted STRC in July
That hike helped STRC recover, but it was not the only factor.
Strategy also sold some bitcoin to fund dividends, and a bit of stabilization in the price of bitcoin gave the shares further support.
Together, these moves pushed STRC back up to the current $89.46 — still significantly below par.
Saylor’s target for STRC
CEO Phong Le this week laid out the company’s longer-term goal for the security.
He said Strategy’s Corporate Objective is for STRC to trade at $99-$100 over time.
Even so, the company is under no obligation to raise the dividend and chose not to do so this month.
For more on the security itself, see this explanation of what STRC is.
