Why Dividend Growth? Trevor Cummings Today, I am writing my Thoughts On Money from 30,000 feet in the air as I head to Denver, where we will be hosting a client dinner this evening.
In the ever-evolving world of finance, it seems like every day brings a new headline that makes you raise your eyebrows and think, “Did I really just read that?” Well, grab your coffee and buckle up because Strategy has decided to shake things up by proposing that their preferred stock dividends—yes, those little nuggets of financial joy—accrue every single day of the year. That’s right, folks. Weekends, holidays, you name it. If there’s a calendar date, there will be dividends.
Now, let’s break this down a bit. We’re talking about STRF, STRC, STRK, and STRD—four preferred stocks that are about to get a serious upgrade in how dividends are managed. You might be wondering, “What’s the point?” Well, according to Strategy, this move is aimed at dampening volatility. And if you’ve been keeping an eye on the markets lately, you know that volatility can be as unpredictable as a cat on a hot tin roof.
So, what does this mean for investors? In layman’s terms, it means you could be collecting dividends like clockwork, even while you’re busy enjoying that well-deserved weekend brunch or, heaven forbid, actually taking a holiday. Imagine that! While everyone else is toasting to the long weekend, your investment is quietly racking up dividends like it’s training for a marathon.
But let’s not get too carried away just yet. There’s always a catch, isn’t there? Strategy is seeking a shareholder vote to make this happen, which means you might want to brush up on your persuasive skills if you plan on attending the next meeting. “Come on, people! Who wouldn’t want daily dividends?” You could even whip out your best sales pitch: “Think of the children!”—because who doesn’t love a good guilt trip?
Now, why daily dividends, you ask? Well, Strategy believes that this could help bring the STRC back toward that ever-elusive $100 mark. If you’re not familiar with the stock market, that’s kind of like saying they want to help it achieve its personal best. With the market being as volatile as a toddler on a sugar high, having dividends accruing daily could provide a bit of stability for investors.
Of course, there will be skeptics. You know, the folks who insist that nothing good ever comes easy. They might say, “Daily dividends? Sounds too good to be true!” But isn’t that the point? In a world where we’re inundated with bad news and uncertainty, having something to look forward to—like daily dividends—could be a game changer.
In conclusion, Strategy’s proposal is an intriguing one that could very well redefine how we think about dividends. If you’re an investor in STRF, STRC, STRK, or STRD, keep your eyes peeled for updates. And who knows? You might just find yourself with a little extra cash in your pocket to spend on that overpriced avocado toast or whatever else you fancy. After all, if dividends can accrue every day, maybe it’s time we start treating ourselves every day too. Cheers to that!
Inspired by: “Strategy Wants Its Preferred Stock Dividends to Accrue 365 Days a Year” (r/Crypto)