Holders of Strategy’s (MSTR) high-yielding preferred stock STRC will not see a dividend increase in August.
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.
Nevertheless, the company is under no obligation to raise the dividend and chose not to do so this month.