MicroStrategy’s 12% Dividend Stock Rebounds 34%: Will It Hold This Time?

Strategy, formerly MicroStrategy, saw its Stretch preferred stock (STRC) touch $100 on Wednesday for the first time since May, after the company spent $208.2 million buying back the shares the prior week. Buyers at the June 26 closing low of $74.57 had gained about 34% on price. STRC is preferred stock with no maturity date that pays a 12% annual cash dividend, with the company resetting the rate monthly and targeting a $99-$100 range. The buyback was partly funded by selling new common shares, which dilutes existing owners. Strategy holds 849,327 bitcoin, about 4% of supply, but the shares are not backed by that bitcoin, and the dividend is not guaranteed.