Strategy Preferred Shares Break Par After 23% June Drop, Yet Cash Funds 10-Month Dividend
STRC•Strategy’s preferred stock yields over 12% and has enough cash on hand to fund dividends for the next 10 months. The issue’s price fell 23% in June after breaking its $100 par value, reflecting investor concerns about sustainable payouts.
1. Dividend Cash Runway
Strategy holds sufficient liquid assets to cover its twice-monthly preferred stock dividends for the next 10 months, aiming to reassure investors amid concerns over payout sustainability.
2. Preferred Stock Price Decline
The preferred issue, which carries a yield above 12%, dropped 23% in June after trading below its $100 par value, signaling investor wariness about the company’s ability to maintain high dividend payouts.
