Strategy holds STRC dividend at 12%

Strategy, led by Executive Chairman Michael Saylor, has decided to maintain the dividend on its high-yielding preferred stock, STRC, at 12% for the upcoming month of August. This is notable because the company has a history of increasing the dividend payout whenever the stock traded significantly below its par value of $100 during the previous month. For example, at the start of July, Strategy raised the dividend by 50 basis points after STRC's price had dropped to as low as $71 in June.

Despite this previous action and a modest recovery in the STRC price to $89.46 in July, the stock remains well below par. CEO Phong Le stated that Strategy's corporate objective is for STRC to trade within the $99 to $100 range over time. However, the company clarified it is under no obligation to increase the dividend again in August and has chosen not to do so at this time.

This development matters because it signals Strategy's intention to stabilize the stock price and dividend payout rather than continue to increase dividends in response to price declines. Maintaining the 12% dividend, despite the stock still trading below par, suggests a more cautious or measured approach in managing returns for STRC investors.