Dividend Dynamics: Understanding STKR’s 8% Dividend
[content-module:CompanyOverview|NASDAQ:MSTR]On Jan. 31, Strategy announced the offering of 8.00% Series A Perpetual Strike Preferred Stock, trading under the ticker symbol STRK. The first thing to understand is that the security will pay an 8% dividend based on a price of $100 per share. However, the opening price of the security was $80 per share. So, initial purchasers, when it was worth $80, will receive $8 in dividends per year, resulting in a 10% yield. An increase in the price of the preferred shares will push the yield down, and a drop in price will push the yield up. As of the Feb. 12 close, it is trading at $90, making the yield 8.9%.
