Strategy’s (MSTR) perpetual preferred stock, STRC, is down 3% in Friday’s pre-market and trading below $73, about 27% below its $100 par value, as investors focus on June 30, the date that brings two important events.
First, June 30 is the ex-dividend date. Investors who own shares before the ex-dividend date will receive the next payment, while buyers on or after June 30 will not. This date also serves as the record date, on which Strategy shareholders qualify for distribution. Eligible investors will receive STRC’s first biweekly dividend of $0.48 per share on July 15.
Normally, a stock decreases by approximately its dividend amount when it begins trading ex-dividend. For STRC, a $0.48 adjustment on a stock at $73 represents less than 0.7%, at a time when STRC is falling as much as 2-3% per day. So, in theory, the ex-dividend date should not be a huge catalyst for further decline in STRC price.
The main catalyst is Strategy’s monthly dividend rate reset. STRC is a perpetual preferred stock, meaning it has no maturity date and pays a dividend that can be reset periodically.
