Glossary · P
Perpetual preferred stock
Preferred shares with no maturity date. The issuer pays dividends but never has to repay the principal. Holders get their money back only by selling, through a redemption or repurchase, or in a liquidation.
Revised 22 October 2026 · Suggest a correction
Perpetual preferred stock is a class of shares that pays a set or variable dividend and has no maturity date. A bond comes with a date on which the principal must be repaid. A perpetual preferred has none, so the issuer can keep the capital indefinitely.
How a holder gets money back
Since there is no maturity, money comes back to a holder in only four ways:
- Selling on the exchange at whatever the market price is.
- Issuer redemption, if the terms allow it. STRC can be redeemed at the issuer's option at $101 per share plus unpaid dividends. STRF, STRK, STRD and STRE can be redeemed only in narrow cases: a clean-up redemption or a tax redemption (STRC certificate of designations summary, 8-K filed 29 July 2025).
- A holder put on a fundamental change, at the stated amount plus accumulated dividends.
- Liquidation of the issuer, where preferred holders rank behind all creditors.
The issuer can also choose to repurchase shares in the market. Strategy has done this with STRC through its repurchase programme.
Why it matters
With no maturity, the market price depends mostly on the dividend rate compared with market yields and on how the issuer's credit is perceived. A fixed-rate perpetual such as STRF can be highly sensitive to interest rates. Strategy's August 2026 briefing gave STRF an illustrative Macaulay duration of about 10.2 years at a 10.04% effective yield (FWP, 24 August 2026).
All of the instruments covered on this site (as of 22 October 2026) are perpetual.
What to check in the filing
- Every redemption right (issuer call, clean-up, tax) and its price
- Holder repurchase rights
- Where the series ranks against debt and other preferred stock