Strategy Inc Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) DIvidends Date & History

Key Takeaways

• STRC is a variable-rate perpetual preferred stock issued by Strategy Inc. that currently pays an annualized dividend rate of roughly 12% on its $100 stated (par) value.
• Dividends are paid semi-monthly (twice per month), currently $0.50 per share per payment, or about $12.00 per share on an annualized basis.
• The dividend rate is variable and has been raised repeatedly—from 9.00% at issuance in mid-2025 to 12.00%—to keep the share price anchored near its $100 par value.
• The dividend is cumulative and ranks senior to common equity but is not covered by a conventional earnings-based payout ratio, because the company reports accounting losses.
• The yield is high relative to most preferred stocks and fixed-income alternatives but carries credit risk tied to Bitcoin's price.

Dividend Overview

STRC is the Nasdaq-listed Variable Rate Series A Perpetual Stretch Preferred Stock of Strategy Inc., the publicly traded company formerly known as MicroStrategy and the world's largest corporate holder of Bitcoin. Unlike the company's common stock (MSTR), which pays no dividend, STRC is designed as an income instrument. It currently offers an annualized dividend rate of 12.00% based on its $100 stated value, producing a yield of roughly 12% at recent market prices.

Dividends are declared and paid semi-monthly, currently $0.50 per share on each of the two monthly payment dates. Because the rate is variable and adjusts periodically, STRC is best characterized as a high-yield, variable-rate preferred security rather than a conventional dividend-growth stock. It has no maturity date and no obligation to repay principal, making it a perpetual instrument whose appeal rests entirely on its recurring cash distributions.

Dividend History and Growth

STRC was first issued in mid-2025 with an initial dividend rate of 9.00% per year. Since then, Strategy has raised the rate in successive increments of 25 to 50 basis points (a basis point is one-hundredth of a percentage point), bringing it to the current 12.00%. These increases are a deliberate feature of the security's "stretch" design: when the share price trades below its $100 par value, the company may raise the dividend to attract buyers and support the price, while rate reductions are limited to no more than 25 basis points per month.

Payment frequency has also evolved. The security began with monthly payments, shifted to a semi-monthly (twice-per-month) schedule in 2026, and Strategy has proposed moving to daily dividend accrual with next-business-day payments, subject to shareholder approval. Annual payouts would be unchanged under that plan. Because the rate is variable rather than a fixed, steadily growing payout, STRC does not have a traditional dividend-growth streak in the sense applied to common-stock dividend aristocrats.

Dividend Sustainability and Payout Ratio

STRC does not have a meaningful earnings-based payout ratio, because Strategy reports accounting losses under generally accepted accounting principles (GAAP) tied to its Bitcoin holdings. Sustainability is instead evaluated through the company's capital structure and balance sheet. The dividend is cumulative, meaning any unpaid distribution accrues and must be settled before common shareholders receive anything, and STRC ranks senior to common equity and to several of the company's other preferred series, though junior to its debt and to its senior preferred series (STRF).

It is important to note that STRC is not collateralized by Strategy's Bitcoin reserves. Dividends are funded from the company's cash position, which it replenishes through equity and preferred issuance and, at times, Bitcoin sales. The rate adjusts to maintain the $100 price anchor, so the distribution is only as durable as Strategy's ability to keep raising capital and servicing its obligations across a Bitcoin price cycle. A prolonged decline in Bitcoin could pressure both the share price and the company's capacity to sustain the current yield.

Dividend Compared to Industry Peers

At roughly 12%, STRC's yield sits well above the typical range for investment-grade preferred stocks, which often pay between 5% and 8%, and far above short-term U.S. Treasury yields of around 3.5%. It also stands out within Strategy's own preferred family, which includes the fixed-rate and senior series STRK, STRD, and STRF.

That premium exists for a reason: STRC's yield compensates investors for variable-rate risk, its junior position in the capital stack, and its indirect exposure to Bitcoin's volatility. Compared with more defensive preferred issues from regulated financial institutions, STRC offers a higher income stream paired with materially higher credit and market risk. Investors should view the elevated yield as a reflection of those risks rather than as a free lunch relative to peers.

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Is This Stock Attractive for Dividend Investors?

STRC may appeal to a specific subset of income investors: those seeking high current yield and willing to accept variable-rate and credit risk in exchange. Its semi-monthly cash flow and double-digit yield can be attractive to yield-seeking retail and institutional investors who do not require a fixed coupon or a guaranteed return of principal.

However, the security is less suitable for conservative investors, retirees relying on stable, predictable income, or traditional dividend-growth investors who prioritize decades of rising payouts backed by steady earnings and free cash flow. STRC's distributions depend on Strategy's ability to fund them through capital markets activity and the performance of Bitcoin, and the rate can move up or down over time. The share price can also fall below its $100 par value during market stress. Investors considering STRC should weigh the high income against the absence of principal protection, the variable nature of the rate, and the company's exposure to Bitcoin volatility.

Disclaimer

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