Strategy Inc (STRC) announced it will maintain the regular dividend rate on its Variable Rate Series A Perpetual Stretch Preferred Stock at 12.00% per annum, effective for semi-monthly periods starting on or after October 16, 2026. The company's board also declared two semi-monthly cash dividends of $0.50 per share, though the second payment is conditional upon the outcome of a planned stockholder vote to change the dividend payment frequency.
Key Details
- Dividend Rate: The annual dividend rate for STRC preferred stock will be maintained at 12.00%.
- Declared Dividends: The board declared a $0.50 per share dividend payable on October 31, 2026 (record date: Oct 15, 2026) and a conditional $0.50 per share dividend payable on November 15, 2026 (record date: Oct 31, 2026).
- Conditional Payment: The November 15 dividend will not be paid if stockholders approve a proposal at a special meeting on October 28, 2026, to switch to a daily dividend payment schedule. If the proposal is approved, the company intends to declare daily dividends for November 2026 instead.
- Expected Tax Treatment: The company expects the declared dividends to be characterized as non-taxable returns of capital for U.S. federal income tax purposes.