Strategies (MSTR) perpetual preferred stock STRC fell 3% in premarket Friday and is trading below $73, about 27% below its $100 par value, as investors focus on June 30, when two key events occur.
First, June 30th is the ex-dividend date. Investors who owned the stock before the ex-dividend date will receive the next payment, but buyers after June 30 will not. This date also serves as the record date upon which Strategy shareholders are eligible to receive distributions. Accredited investors will receive STRC’s first semi-monthly dividend of $0.48 per share on July 15th.
Typically, when a stock begins trading ex-dividend, it falls by approximately the same amount as its dividend. In the case of STRC, a $0.48 adjustment on a $73 stock represents less than 0.7% while STRC is down 2-3% per day. Therefore, in theory, the ex-dividend date should not be a major factor in causing further declines in STRC prices.
The bigger trigger is the reset of the strategy’s monthly dividend rate. STRC is a perpetual preferred stock. This means that it has no expiration date and pays dividends that can be reset periodically.
