Strategy shareholders greenlight daily dividends for its preferred shares

Strategy preferred stocks are about to start reporting profits every day. On Wednesday (October 28), the company confirmed that its ordinary shareholders had approved the change it first initiated in September.

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• STRC starts first: By strategy last 8-KThe floating rate STRC reverses on November 1st, so its first daily dividend is expected to arrive on Monday, November 2nd. The other three (STRF, STRK and STRD) will make the jump in early 2027, with their first daily payment due on January 4.

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• Same performance, new rhythm: THE proxy said the change does not affect the strategy’s dividend rates or overall payment obligations. At the current 12% STRC rate, holders still collect about $1 per $100 worth of stock each month, distributed each day.

• Weirdness of the weekend: Each calendar day receives a record date, but for stocks held by DTC (the primary securities depository in the United States), weekend and holiday record dates revert to the previous trading day. In Strategy’s example, dividends from November 6-8 all count from Friday, November 6 and are paid on Monday, November 9, so a buyer this Friday gets none.

• No preferred vote: Only holders of Class A and B common stock voted, with Saylor alone holding 32.9% of the voting rights. The holders of the four preferences themselves had no say.

• Zoom out: The daily payments make the STRC much more like a money market account, but remember that the STRC is still a perpetual preferred stock rather than a bank deposit, and dividends are only paid when the board declares them. Watch Strategy’s third-quarter earnings conference call Thursday, Oct. 29, to find out if the STRC show will return.