Strive (ASST) has put its new preferred capital structure to work quickly by declaring the first cash dividend on its 15.00% Series A Perpetual SATS Preferred Stock only days after completing the offering.
The preferred dividend news follows a sharp 90-day share price return of 119.7% for Strive, even though the stock is down 10.6% on a 30-day share price basis and the 1-year total shareholder return is still 19.8% lower, suggesting that momentum has recently cooled after a strong run.
Compare Strive's preferred dividend move with other income-focused opportunities by scanning our curated list of 5 dividend fortresses across the market.
Strive’s common stock has surged over the past three months while the preferred now offers a fixed 15% coupon. Is most of the easy upside already spent, or does the current valuation still leave meaningful room ahead?
Preferred price-to-book of 3.5x for Strive: Is it justified?
Valuation on Strive now turns on a simple question. Does a 3.5x price-to-book multiple on the common shares still make sense after such a sharp rebound in the stock over the past quarter?
The P/B ratio compares the market value of Strive’s equity to its accounting book value. For an asset manager that is still loss making, this metric often becomes a shorthand for what investors are willing to pay for the existing capital base and the franchise behind it, rather than current profitability.
At 3.5x, Strive screens as good value against its direct peer group, where the average sits at 5.5x. That is a sizeable gap and suggests the market price is not assigning the same premium to the business as comparable firms. For investors, it raises the question of whether this discount reflects concerns about ongoing losses, the relatively short operating history since 2022, or simply a market that has not re-rated the stock in line with faster trading moves seen over the last 90 days.
The picture shifts when Strive is lined up against the broader US Medical Equipment industry, where the typical P/B is 2.5x. On that yardstick, the same 3.5x multiple looks expensive, implying the shares trade at a higher level relative to book value than the average stock in the sector. The split readings highlight how sensitive any conclusion is to which comparison set is more relevant: pure-play peers or the wider industry group.
See what the numbers say about this price — find out in our valuation breakdown.
Result: Price-to-book of 3.5x (ABOUT RIGHT)
Still, the ongoing net loss of US$975.456m and relatively short operating history since 2022 leave Strive exposed if investor sentiment or funding conditions weaken.
Find out about the key risks to this Strive narrative.
Next Steps
Strive’s mix of sharp recent gains, a rich preferred coupon and ongoing losses creates a split verdict on the stock’s appeal. Act quickly, stress test the numbers yourself and weigh both sides of the story through the 1 key reward and 4 important warning signs
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