Strategy holds STRC dividend at 12%
Strategy has decided to maintain its 12% dividend on STRC shares despite investor expectations for a hike. While the company aims for its stock to trade near its $100 par value, management has opted to keep the current payout level for the month.
Why it matters
The decision highlights the company's cautious capital allocation strategy amidst ongoing volatility in the bitcoin market and the stock's performance relative to its par value.
Led by Executive Chairman Michael Saylor, Strategy is maintaining the current 12% dividend on the shares.
STRC investors may have been expecting as much as a 50-basis-point hike in the dividend as Strategy has customarily raised the payout anytime the stock traded sizably below its par value ($100) for the month.
As recently as July 1, Strategy had lifted the dividend 50 basis points following June’s plunge in STRC to as low as $71.
While that hike — along with Strategy’s sale of some bitcoin to fund dividends, and a bit of stabilization in the price of bitcoin — helped STRC bounce in July to the current $89.46, that level is still significantly below par.
CEO Phong Le yesterday said Strategy’s Corporate Objective is for STRC to trade at $99-$100 over time.
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