In a groundbreaking move, Strategy has proposed a shift in the way dividends for its preferred stocks are calculated, aiming to enhance liquidity and price stability. According to the official information, this proposal, which has already received board approval, is set to be presented to shareholders for final approval later this month.
Approval of Proposal for Daily Dividend Record Dates
On September 24, 2023, Strategy's board approved a proposal to change the dividend record dates for its preferred stocks from the traditional monthly, semimonthly, or quarterly schedules to daily record dates. This change, which was filed with the SEC on September 25, 2023, would allow dividends to be recorded every calendar day, with payments made on the following business day, including weekends and holidays.
Shareholder Approval and Implementation Timeline
Shareholder approval is crucial for the proposal to take effect, with a special meeting scheduled for October 28, 2023. If approved, the first daily record date is anticipated to be November 1, 2023, for STRC, while other stocks are expected to transition to this new system in January 2027. Importantly, the regular dividend rates will remain unchanged as the company seeks to improve the overall trading experience for its preferred stockholders.
In contrast to Strategy's proposed changes to dividend calculations, NatWest Group recently announced a significant increase in its dividend yield, reflecting strong financial performance. For more details, see NatWest's announcement.
