Non-cumulative dividend

On non-cumulative preferred stock, dividends exist only once the board declares them. If a period passes without a declaration, that dividend is lost. It does not accrue, does not compound and is not owed later.

How it applies to STRD

STRD (Stride) pays a fixed 10.00% a year on its $100 stated amount, quarterly, "when, as and if declared". Strategy has no obligation to pay undeclared dividends, and nothing accrues on them (certificate of designations, 8-K filed 10 June 2025). STRD is also Strategy's most junior preferred: it ranks behind STRF, STRC, STRE, STRK and all debt.

Every quarterly STRD dividend since issue has been declared and paid, most recently $2.50 per share on 30 September 2026 (8-K, 31 August 2026). Past declarations do not bind future ones.

STRD's repurchase price on a fundamental change, and its clean-up and tax redemption prices, add only declared and unpaid dividends. Cumulative series add all accumulated dividends.

Why an issuer uses it

A non-cumulative series gives the issuer more flexibility, because skipping a dividend creates no arrears. Holders bear that risk instead. All else being equal, this is a reason a non-cumulative series may trade at a higher effective yield than a cumulative series from the same issuer.

Protection that may still apply

Non-cumulative terms often still contain a "dividend stopper", which limits payments on junior stock in a period when the preferred dividend was not paid. Holders should read the exact clause in the certificate of designations rather than assume it.

What to check in the filing

• "Non-cumulative" wording and what happens to undeclared dividends
• Any dividend stopper on junior or parity stock
• Repurchase and redemption amounts (declared vs accumulated dividends)