STRF Dividend: 10% Cumulative — Strategy's Most Senior Preferred
Terms, seniority, and the 18% penalty mechanism
STRF ("Strife") is Strategy's most senior preferred stock: a fixed 10.00% cumulative dividend on a $100 stated amount, paid quarterly. In a liquidation, STRF holders stand ahead of every other Strategy preferred series and common stock — only debt ranks higher.
Its distinguishing feature is the penalty mechanism: if Strategy misses an STRF dividend, the unpaid amount accumulates and compounds at up to 18% per year, and must be cleared before any other preferred or common dividend can be paid.
Key Terms
Missed STRF dividends accumulate and compound at up to 18% per year until paid.
Frequently Asked Questions
What is STRF stock?›
STRF is Strategy Inc's 10.00% Series A Perpetual Strife Preferred Stock — the most senior of the company's five preferred series, with a $100 stated amount and quarterly cumulative cash dividends.
What happens if Strategy misses an STRF payment?›
Unpaid STRF dividends accumulate and compound at a penalty rate of up to 18% per year, and must be paid in full before Strategy can pay dividends on STRC, STRK, STRD or common stock.
STRF vs STRC — which is safer?›
STRF ranks above STRC in the capital stack and its 10% dividend is fixed rather than board-adjusted, which is why the market usually prices STRF at a lower yield than STRC. STRC compensates for its junior position with a higher, variable rate and semi-monthly payments.
Official Sources
For information only — not investment advice. Preferred dividends are paid only if declared by the board, and none of these securities are collateralized by Strategy's Bitcoin holdings.