What does issuing perpetual preferred stock mean in a high-interest-rate environment?

If the current environment is relatively high interest rates, choosing to issue perpetual preferred stock is itself a statement of attitude—management believes that future investment returns can cover financing costs. If this judgment is correct, it indicates that the company is confident in its industry prospects and its own competitiveness.
Perpetual preferred stock is often viewed as a "quasi-equity instrument," which is partially recorded as equity in accounting, helping to improve leverage ratios. Therefore, it is not only a financing tool but also a financial structure management tool. For companies that prioritize credit ratings and capital adequacy, this is especially critical.
However, risks also exist. High dividends mean long-term cash flow commitments, which may limit the company's flexibility once the industry enters a downturn cycle. Especially in industries with volatile profits, preferred stock dividends can become a financial burden.
Market sentiment is often short-sighted, with concerns about dilution or pressure when it comes to financing; but mature investors focus more on long-term capital allocation efficiency. If the company can invest funds into high ROIC projects, then financing acts as an amplifier; if invested in inefficient areas, it amplifies risks.
Therefore, the core logic of this issuance is only one question: Does the Strategy have the ability to convert "capital" into "sustainable returns"? If the answer is yes, then financing is a booster; if no, then no matter how sophisticated the structure, it is only delaying the problem.
#Strategy拟增发永续优先股