Strategy Wants To Pay Preferred Stock Dividends Every Day

TL;DR Strategy is asking shareholders to approve daily dividend record dates for STRC, STRD, STRF and STRK. The proposed change would alter payment frequency without changing dividend rates or increasing total regular dividend obligations. Shareholders are expected to vote on the amendments at a special meeting on October 28. Strategy is proposing an unusual change to the preferred stocks that sit alongside its enormous Bitcoin treasury: dividends calculated around daily record dates rather than monthly, semi-monthly or quarterly schedules. The company’s board approved the proposal on September 24, with Strategy filing details with the SEC the following day. Shareholder approval is still required. Daily Payments Would Not Mean Higher Dividends The proposal covers four U.S.-listed preferred securities: STRC, STRF, STRK and STRD. If approved, every calendar day would become a dividend record date. Any dividend declared for that date would then be paid on the following business day. That includes weekends and holidays as record dates even though the cash payment itself would wait for the next business day. The important detail is what does not change. Strategy says the amendments woul...