Strategy Upholds 12% Dividend on STRC Preferred Shares, Declares Dual Cash Payouts
A recent 8-K filing by Strategy Inc. with the Nasdaq reveals that the company's STRC series of preferred shares will continue their attractive dividend policy. Starting October 16, the semi-monthly annualized dividend rate for these shares remains fixed at 12.00%.
Schedule and Amount of Dividend Distributions
The board of directors has declared two separate cash dividends for the STRC preferred shares, each set at $0.50 per share.
- First Payment: Scheduled for October 31, with a record date of October 15.
- Second Payment: Planned for November 15, with a record date of October 31.
Potential Adjustment to November Payment Method
The November 15 payment comes with a conditional clause. If shareholders approve an amendment for "daily dividend recording" at a special meeting on October 28, and the amended certificate becomes effective by November 1, the distribution process will be modified.
Under this scenario, starting in November, dividends would be recorded on a daily calendar basis and paid on the next business day. Importantly, this potential operational change does not affect the yield—the annualized dividend rate stays at 12%.
Expected Tax Treatment
Strategy indicated in the filing that it expects these dividend payments to be treated as a non-taxable return of capital for tax purposes. This classification could offer a potential benefit to shareholders regarding their tax liability.
This announcement provides clarity on the near-term income stream for STRC preferred shareholders. The possible refinement to the payment mechanics for the second installment also highlights the company's focus on operational flexibility in returning capital to investors.