by Fred Fuld III
For decades, investors have become accustomed to receiving dividend payments on a monthly, quarterly, or annual schedule. Now, Strive, Inc. (Nasdaq: ASST) has introduced something never before seen in the U.S. public markets: its Variable Rate Series A Perpetual Preferred Stock (Nasdaq: SATA) pays cash dividends every single business day.
Beginning June 16, 2026, SATA became the first exchange-listed security in U.S. capital market history to distribute cash dividends each business day rather than monthly or quarterly. The innovation represents a significant change in how income-producing securities can be structured and may influence the future design of dividend-paying investments.
How Does the Daily Dividend Work?
Although shareholders receive cash every business day, the dividend is not declared every day.
Instead, Strive’s board declares the dividend once each month for the upcoming monthly dividend period. The declared monthly dividend is then divided into equal daily amounts and distributed over each business day during that month.
Each business day:
- Investors who were shareholders of record on the preceding business day become eligible for that day’s payment.
- The cash dividend is deposited into their brokerage account.
- The process repeats every business day throughout the month.
This approach allows investors to receive a steady stream of income without requiring the company to make a new dividend declaration every day. The monthly declaration satisfies corporate governance requirements while the payment mechanism distributes the cash in daily installments.
A 13% Annual Dividend Rate
Strive’s board maintained the annual dividend rate on SATA at 13.00%, one of the highest yields among exchange-listed preferred securities.
For example, if the monthly dividend period contains 22 business days, each day’s payment equals one twenty-second of that month’s declared dividend. Investors therefore receive approximately 250 individual dividend payments during a typical year instead of only 12 monthly payments.
Why Pay Every Business Day?
The daily-payment structure offers several potential advantages.
First, investors begin receiving cash almost immediately after becoming eligible rather than waiting until the end of the month.
Second, more frequent payments allow investors to reinvest their dividends sooner, which may modestly enhance long-term returns through more frequent compounding.
Third, the structure may make SATA attractive to income-oriented investors who prefer a regular stream of cash flow for living expenses or reinvestment.
Finally, the daily payments may reduce some of the price fluctuations that often occur immediately before and after traditional monthly ex-dividend dates because dividend value is distributed much more continuously. While the stock still trades ex-dividend each business day, the adjustment is only for one day’s dividend rather than an entire month’s payment.
An Example
Suppose the declared monthly dividend is $1.10 per share and there are 22 business days in that month.
Rather than paying the full $1.10 at month-end, Strive divides the payment:
- Monthly dividend: $1.10
- Business days: 22
- Daily payment: $0.05 per share
An investor owning 1,000 SATA shares would therefore receive approximately $50 in cash every business day, instead of one monthly payment of about $1,100.
A Unique Innovation
Daily interest payments have long existed in bank accounts, money market funds, and certain short-term investments. Daily cash dividends on an exchange-listed preferred stock, however, had never been implemented before SATA.
Matthew Cole, Strive’s Chairman and CEO, described SATA as “the first listed security in the history of U.S. capital markets to pay cash dividends every single Business Day.”
Will Other Companies Follow?
Whether other publicly traded companies adopt a similar model remains to be seen. Implementing daily cash payments requires additional administrative and brokerage processing, but advances in electronic settlement systems make such payment schedules increasingly practical.
If investors respond favorably, daily dividend payments could become an attractive feature for certain preferred stocks, exchange-traded products, or other income-oriented securities.
For now, Strive’s SATA preferred stock stands alone as a pioneering example of how dividend distributions can be reimagined, offering shareholders a continuous stream of cash income every business day while maintaining a conventional monthly dividend declaration process.
The key point is that Strive, Inc. (Nasdaq: ASST) is not paying a 13% dividend from the profits of its operating business. The dividend on the Variable Rate Series A Perpetual Preferred Stock (Nasdaq: SATA) is supported by a combination of investment income, financing activities, and the economics of the preferred stock structure itself. Here’s how it works.
What Does Strive Do?
Strive, Inc. began as an asset management company founded in 2022. It offers exchange-traded funds (ETFs) and wealth management products and has positioned itself as an advocate of “shareholder capitalism.” More recently, the company has expanded into alternative assets, including a significant focus on digital assets and corporate treasury strategies.
The company generates revenue from several sources:
- Management fees from ETFs and investment products.
- Advisory and asset management fees.
- Investment income on assets it owns.
- Capital markets activities, including issuing preferred securities and raising capital.
Its operating business alone does not generate enough earnings to support a 13% dividend.
What Is SATA?
SATA is a preferred stock, not common stock.
Preferred shareholders generally receive:
- A fixed or variable dividend.
- Priority over common shareholders for dividend payments.
- No participation in most of the company’s future growth.
Because preferred investors give up much of the upside enjoyed by common shareholders, they typically demand a higher current yield.
Where Does the 13% Come From?
There are several sources.
1. Capital Raised From Investors
When Strive issued SATA, investors paid cash to purchase the preferred shares.
That cash became part of the company’s capital base. Management then invests or deploys that capital in businesses and assets expected to earn returns exceeding the cost of the preferred dividend over time.
In that sense, SATA functions similarly to financing through bonds or preferred stock.
2. Investment Returns
Strive expects its investments to earn more than its financing cost.
For example:
- If the company can earn 18–20% on invested capital while paying 13% to preferred shareholders, the spread belongs to common shareholders.
Many financial companies operate using this basic principle.
3. Growth Expectations
Investors purchasing SATA are effectively financing Strive’s expansion.
Management believes it can invest the proceeds into opportunities with attractive long-term returns.
If those investments perform well, paying 13% may be worthwhile because the company retains profits above that cost.
4. Preferred Stock Is Expensive Capital
A 13% dividend sounds unusually high because it is.
Preferred stock is among the most expensive forms of financing. Companies usually issue it when they:
- want to avoid diluting common shareholders,
- don’t want additional traditional debt,
- or believe future returns justify paying a high financing cost.
Is the Dividend Guaranteed?
No.
Although preferred dividends receive priority over common dividends, they depend on the company’s financial condition and the terms of the preferred stock.
If Strive encountered financial difficulties, the board could suspend dividends, subject to the rights and restrictions specified in the preferred stock’s terms. Whether unpaid dividends accumulate depends on whether the preferred stock is cumulative or non-cumulative under its governing documents.
Why Would Investors Buy It?
Different investors have different goals.
Some are attracted by:
- A very high current yield.
- Daily cash dividend payments.
- Priority over common shareholders.
- Potential price stability compared with common stock.
Others may avoid it because:
- The dividend depends on Strive’s financial performance.
- Preferred shares generally have limited upside.
- A 13% yield often signals higher perceived risk.
Can Strive Really Afford 13%?
That’s the critical question.
A 13% financing cost is much higher than what large, established companies typically pay. For Strive, the preferred dividend is economically similar to paying 13% interest on borrowed capital.
The company can sustain that cost only if:
- its investments consistently generate returns above 13% (after expenses), or
- it raises additional capital and grows its asset base successfully.
If investment returns fall below the cost of the preferred capital for an extended period, maintaining such a high dividend could become difficult.
In short, the 13% yield should be viewed less as a reflection of abundant current profits and more as the cost of capital Strive is willing to pay to obtain funding for its investment strategy. Investors are effectively lending long-term capital to the company through a preferred equity instrument and receiving a high income stream in exchange for accepting the associated business and market risks.
Disclosure: Author didn’t own any of the above at the time the article was published. No investment recommendations are expressed or implied.
