Strategy Inc. disclosed plans to begin paying daily cash dividends on its STRC preferred shares starting Nov. 2, subject to shareholder approval. The company announced the initiative in an Oct. 16 Securities and Exchange Commission filing.
Under the proposed arrangement, STRC shareholders would receive daily dividends of either $0.03 or $0.04 per share, totaling $1 per share for November. Payments would be made on the business day following each record date, with dividends accruing on weekends and holidays. The first payment is scheduled for Nov. 2, with the final November dividend payable Dec. 1.
Strategy has scheduled a special shareholder meeting for Oct. 28 to vote on amendments allowing daily dividend record dates for its preferred shares. The company requires approval by Oct. 31 and must have amended STRC governing documents effective by Nov. 1 for the new schedule to take effect. If these conditions are not met, Strategy will retain its existing dividend arrangement with a payment previously scheduled for Nov. 15.
The company intends to maintain STRC's 12% annual dividend rate for November if the changes are approved. Management said it plans to recommend maintaining that rate until the preferred shares demonstrate sustained, healthy trading near $100.
Current Share Performance
STRC was recently trading just above $99 per share after reaching $99.94 on Wednesday, the highest price since May when shares last touched $100. Officially known as Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, STRC is a $100-par security with no maturity date.
Expansion of Daily Payment Structure
The proposed daily dividend schedule represents another acceleration in Strategy's payment structure. STRC shifted from monthly to twice-monthly dividends earlier this year, and the company announced plans in September to move toward daily payments across four preferred stock offerings.
The broader proposal also covers STRF, STRK, and STRD, which currently pay declared dividends quarterly. Daily record dates for those securities are expected to begin Jan. 1, 2027, subject to necessary approvals.
Strategy has argued that more frequent dividends could reduce delays between payments and reinvestment, improve liquidity, and help stabilize preferred share prices. The company stated that the changes are not intended to increase its total regular dividend obligations.
Strategy also said it expects the November daily dividends, if paid, to be treated as nontaxable returns of capital for U.S. federal income tax purposes, up to each shareholder's tax basis in the shares.
