How might this dividend affect the demand for OHC's preferred shares in the market moving forward?

The $0.5469 cash payout represents an 8.75 % annualized yield on the $6.25 par value of the Series A cumulative, perpetual preferreds—well above the yields on comparable U.S. treasuries and most senior‑secured preferreds in the sector. Because the dividend is both cumulative (guaranteeing that missed payments accrue) and perpetual, it behaves like a high‑coupon bond that can’t be called, making it especially attractive to income‑focused investors (pension funds, REITs, and yield‑seeking retail traders). The announcement therefore should lift the perceived credit quality of OHC’s capital structure, prompting a short‑term demand surge as investors scramble to lock in the “run‑up” to the record‑date (Aug 31). Expect the preferred‑share price to edge higher in the days leading into the ex‑dividend date, with the upside capped by the modest cash outlay relative to the company’s cash‑flow profile.

Once the dividend is paid (Sept 15) the price will typically settle back toward the post‑dividend adjusted level—often a modest pull‑back of 1‑2 % as the ex‑dividend “discount” is factored in. However, the real driver of forward demand will be the ongoing yield and the firm’s ability to sustain it. If OHC continues to post strong cash‑generation from GunBroker.com and its ammunition business, the 8.75 % coupon will keep the preferreds in demand, especially if broader market rates stay low. Conversely, any hint of a redemption plan or a downgrade in the company’s credit outlook could trigger a sell‑off.

Actionable take‑aways:

- Buy‑the‑dip: Consider entering a position a day or two before the record‑date to capture the dividend‑capture premium, but be mindful of the short‑term price bump.

- Hold through payment: If you’re targeting the high yield, stay in the position through the September payout; the price will likely normalize after the dividend is paid.

- Monitor fundamentals: Keep an eye on OHC’s cash‑flow trends and any redemption announcements. A sustained cash‑flow supports the 8.75 % coupon and underpins longer‑term demand, while a redemption signal could cap upside and increase supply pressure.

In short, the dividend announcement should boost short‑term demand and price, while the high, cumulative yield will continue to attract income‑seeking investors as long as OHC’s cash‑generating businesses remain robust.