Strategy’s Preferred Stock Dividends Keep Accruing Every Day
Strategy Wants Its Preferred Stock Dividends to Accrue 365 Days a Year
Strategy is seeking to have dividends on its preferred stock accrue throughout all 365 days of the year. The approach would treat every calendar day as part of the dividend-accrual period, rather than limiting accrual to business days or another shorter convention.
Preferred stock generally provides investors with a stated dividend, giving it characteristics of both equity and fixed-income instruments. The way that dividend accrues can affect how much is owed over a given period and how payments are calculated.
The proposed structure would therefore make the timing of dividend accrual an explicit feature of Strategy’s preferred stock. The available information does not specify the affected security, dividend rate, or the company’s timetable for implementing the change.
