twice as good now

Strategy (MSTR) just proposed one of the more interesting dividend tweaks I have seen in a while. STRC, their perpetual preferred stock, is moving from monthly payouts to every two weeks.

Same 11.5% annualised yield. Same $1.2 billion total annual payout. Just paid more often.

Let me walk you through what this actually means and why it is smart.

💰 WHY THE CHANGE

Every time STRC goes ex-dividend, the stock price drops by about 45cents on average. It then takes around two weeks to climb back to its $100 par value.

That is the known pattern for any monthly dividend payer. Pay out, drop, recover, repeat.

By splitting the payout into two smaller chunks each month, the price drop each time gets smaller. Recovery gets faster. Volatility smooths out.

Think of it this way. Instead of hitting one big pothole a month, you get two tiny speed bumps. Smoother ride for everyone on board.

📉 THE VOLATILITY STORY

STRC volatility averaged 13% from Aug 2025 to Mar 2026. By Apr 2026 it had already dropped to around 2%. Saylor believes the semi-monthly switch takes it even lower.

A variable rate preferred trading tightly around par is exactly what an income investor wants. Low drama. Predictable cash flow. Boring is beautiful.

🏦 WHY IT MATTERS FOR YOU

Most preferreds in the market pay quarterly. 921 of them in fact. Only 32 pay monthly.

If this proposal passes, STRC becomes the only preferred in the entire market paying semi-monthly. First of its kind.

It also lines up neatly with the US payroll cycle. Payday, dividend day. Payday, dividend day. A steady rhythm that syncs with how Americans actually manage their money.

For anyone reinvesting, this means your cash compounds faster. Less money sitting idle between payments. More shares working for you.

🗓 KEY DATES

Shareholder vote closes Jun 8. If approved, the first record date is Jun 30 and the first semi-monthly payment hits Jul 15.

STRC is currently trading around $99. Near par. Yielding 11.5%.

Pete's Take 👇

This is a quiet, smart innovation. It does not change the yield. It does not change the risk profile. But it does make the product behave better for income investors who want cash flow that feels like a paycheck.

Saylor is not trying to juice returns here. He is engineering a more predictable experience. That is the kind of thinking I respect.

🎯 WHY Dividend Market Genius

Most people look at STRC and stop at the number. 11.5%. Done.

Inside DMG, we go deeper. Why is the yield set that high? What is actually backing those payments? What happens when interest rates move? How does changing a dividend schedule affect volatility, total return, and your real cash flow?

These are the questions that separate investors from speculators. And they are exactly what we break down together every week.

If you want to understand how to evaluate income products like STRC properly, and build a portfolio that pays you like a second salary, come join us in DMG.

👉 https://investwithpete.teachable.com/p/dmg 

Happy Hunting!

Pete
Invest with Pete

🚨‼️ By the way, I’ll never PM anyone on telegram or any other social media platforms. If you receive any “Pete” messaging you, these are scammers impersonating me. Pls beware!

The information provided in this newsletter is for informational purposes only and does not constitute financial advice. Readers should seek their own independent financial advice before making any investment decisions. Please note that while Pete is a portfolio manager, the opinions expressed in this newsletter are his own and do not represent the views of any organization. Always perform your own research and due diligence before investing.