Strategy shareholders approve semi-monthly dividends for STRC, first payment set for July 15

The preferred stock's shift from monthly to twice-monthly payouts aims to smooth out ex-dividend volatility while maintaining an 11.50% annualized rate.

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Add us on Google by Editorial Team Jun. 9, 2026

Strategy’s preferred stockholders just voted to get paid more often. Not more money, mind you, just more frequently.

During the company’s 2026 Annual Meeting on June 8, shareholders of Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, ticker STRC, approved a transition from monthly to semi-monthly dividend payments. The first record date under the new schedule lands on June 30, with the initial payout slated for July 15, pending board declaration.

What the new schedule actually looks like

Record dates will now fall on the 15th and the last day of each month. That means STRC holders get two smaller checks instead of one larger one.

The annualized dividend rate stays put at 11.50%, still variable and adjusted monthly to help keep STRC trading near its $100 par value. Nothing changes about how much investors earn over a year.

As of early June, STRC was changing hands around $96.85. That slight discount to par pushes the effective yield to roughly 11.87%, a premium that reflects the gap between market price and the stock’s stated value.

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The total notional outstanding value of STRC sits at approximately $10.5 billion, making this one of the larger perpetual preferred issues in the market.

Why semi-monthly matters more than you’d think

Here’s the thing about dividend-paying securities: every time a stock goes ex-dividend, its price typically drops by roughly the dividend amount. For monthly payers, that creates twelve noticeable dips per year. For semi-monthly payers, each individual dip is smaller because each payment is half the size. Splitting the same annual payout across 24 payments instead of 12 means each ex-dividend price adjustment is less dramatic.

Executive Chairman Michael Saylor and President/CEO Phong Le have positioned the change as a way to reduce ex-dividend price volatility and enhance liquidity. For a preferred stock that’s designed to hug a $100 par value, minimizing artificial price swings makes the instrument behave more predictably.

The broader Strategy picture

STRC occupies an unusual corner of the market. It’s a perpetual preferred stock issued by a company best known for its massive Bitcoin treasury, yet the preferred shares themselves are not collateralized by those Bitcoin holdings. That distinction matters enormously for risk assessment.

Investors buying STRC are making a bet on Strategy’s ability to service its preferred dividend obligations through operating cash flow and capital markets access, not on Bitcoin’s price trajectory. An 11.50% annualized rate on a Nasdaq-listed preferred is aggressive by any standard, and the variable adjustment mechanism designed to anchor trading near par adds a layer of structural support that straight preferred issues lack.

The approval of this dividend schedule change passed as Proposal 5 at the annual meeting.

What this means for investors

The semi-monthly shift doesn’t change Strategy’s total dividend obligations by a single dollar. The company owes the same 11.50% annualized rate regardless of whether it writes 12 checks or 24.

The current discount to par, with STRC trading around $96.85 against its $100 face value, creates an entry point where investors buying at that level lock in an effective yield above the stated 11.50% rate.

The first test comes July 15, when Strategy makes its initial semi-monthly payment under the new schedule.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.