Each 1% increase in coupon shaves off approximately 1x of torque over 10 years. STRK’s 8% is the sweet spot for maximum torque. STRD’s 11.75% is costly, limiting upside.
If MSTR can skip your dividend without consequence (like in STRD), you’re taking more risk. In STRF and STRC, they’ll owe you back-payments, which protects your long-term return.
Only STRK is convertible. That means you might end up with MSTR shares if things go well — adding upside torque. But that also dilutes existing common shareholders.
- Quarterly (STRK, STRF, STRD) may suit institutions and funds.
- Monthly (STRC) appeals to those needing regular cash, like pensions and income-focused investors.
Even if a preferred trades at $85 or $118, MicroStrategy pays the coupon on the par value ($100). For investors, this means yields vary based on market price. For MicroStrategy, what matters is what they agreed to pay at issuance.
