Preferred Stock Comparison
STRC vs STRD: Which Is the Better Pick in 2026?
A head-to-head comparison of Strategy Variable Rate Series A Perpetual Stretch Preferred Stock and Perpetual Stride Preferred Stock covering yield, cost, risk, and income potential.
Data updated August 13, 2026
Best for
- STRCInvestors who want the steadier, bond-like income of a preferred security.
- STRDInvestors who want higher current income (14.65% vs 6.29% for STRC).
Side-by-side snapshot
| Metric | STRC | STRD |
|---|---|---|
| Full name | Strategy Variable Rate Series A Perpetual Stretch Preferred Stock | Perpetual Stride Preferred Stock |
| Issuer | Strategy | Strategy |
| Last Close | $95.31 as of August 13, 2026 | $68.18 as of August 13, 2026 |
| Distribution yield | 6.29% | 14.65% |
| Distribution Safety Score™ | 81 | 65 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Semi-Monthly | Quarterly |
| Underlying index | Preferred equity security issued by MicroStrategy Incorporated. | Preferred equity security issued by MicroStrategy Incorporated. |
| Objective | Stretch (STRC) is Strategy’s perpetual preferred stock that pays a variable cash dividend twice a month (semi-monthly) — most recently $0.50 per share per payment, an annualized rate of about 12% on its $100 par value. STRC’s dividend rate is reset each month to encourage trading around STRC’s $100 par value and to help strip away price volatility. | Provide investors with a 10% non-cumulative fixed dividend through MicroStrategy's junior preferred equity structure. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Last dividend | $0.5000 | $2.5000 |
| Ex-dividend date | 08/31/2026 | 06/15/2026 |
Bottom lineChoose STRC if you want the steadier, bond-like income of a preferred security. Choose STRD if you want higher current income (14.65% vs 6.29% for STRC).
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Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
STRC has outpaced STRD over the trailing twelve months, posting a 9.40% total return against -9.21%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 13.03% a year versus -7.05% for STRD. STRC has been the steadier holding, though — annualized volatility of 22.1% against 32.1% for STRD. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | Since Jul 2025 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|
| STRC | 3.05% | 9.40% | 13.03% | 22.1% | 0.20 | 0.30 | -24.3% |
| STRD | -3.49% | -9.21% | -7.05% | 32.1% | -0.44 | -0.57 | -34.4% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 12, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jul 2025” measures every fund from July 30, 2025 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the past year. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the past year) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Quick verdict
STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) and STRD (Perpetual Stride Preferred Stock) are both dividend-paying preferred stocks, but they take different approaches.
STRD offers the higher yield at 14.65% vs 6.29% for STRC. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, STRC would generate roughly $52.42/month, while STRD would produce $122.08/month, at current distribution rates.
Strategy & risk
Both STRC and STRD wrap Preferred equity security issued by MicroStrategy Incorporated. with similar strategies (bitcoin and bitcoin). The practical differences are yield target, fee structure, and issuer track record — not the underlying mechanic.
Security details
STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) is a preferred stock. STRD (Perpetual Stride Preferred Stock) is a preferred stock.
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Frequently asked questions
What is the current distribution yield for STRC and STRD?
STRC currently distributes 6.29% and STRD 14.65%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
Is STRC or STRD better for dividend income?
It depends on your goals. STRD currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between STRC and STRD?
Both STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) and STRD (Perpetual Stride Preferred Stock) track Preferred equity security issued by MicroStrategy Incorporated. with similar approaches — the labels "bitcoin" and "bitcoin" describe closely related mechanics. The real differences show up in yield target (6.29% vs 14.65%), expense ratio (— vs —), and issuer (Strategy vs Strategy).
Can I hold both STRC and STRD?
You can, but expect significant overlap. Both funds use similar strategies on Preferred equity security issued by MicroStrategy Incorporated., so holding them together gives you two wrappers around effectively the same exposure — not true diversification. Weigh issuer, fee, and yield differences rather than treating them as complementary.
Is STRC or STRD safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — STRC scores 81, STRD scores 65, so STRC's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in STRC vs STRD generate?
At current rates, $10,000 in STRC would generate roughly $52.42 per month ($629.00 annually). The same in STRD would produce about $122.08 per month ($1,465.00 annually).
Which has performed better historically, STRC or STRD?
STRC has outpaced STRD over the trailing twelve months, posting a 9.40% total return against -9.21%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 13.03% a year versus -7.05% for STRD. STRC has been the steadier holding, though — annualized volatility of 22.1% against 32.1% for STRD. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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STRC vs STRD — at a glance
Generated August 8, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
STRC and STRD are both perpetual preferred stocks issued by MicroStrategy, the Bitcoin-heavy software and business intelligence company. They differ fundamentally in structure and yield: STRC pays a variable semi-monthly dividend (currently 6.38% annualized) reset monthly to stabilize price around par, while STRD pays a fixed 10% non-cumulative dividend quarterly but trades at a significant discount to its stated par value, resulting in a current yield of 15.91%.
How they differ
The biggest distinction is dividend stability versus yield. STRC's variable-rate reset mechanism is designed to keep the stock trading near its $100 par value and reduce price volatility; it currently yields 6.38% annualized. STRD offers a fixed 10% coupon but has fallen to $66.00, amplifying its current yield to 15.91%—a substantial premium to STRC's current payout rate. STRC distributes semi-monthly while STRD distributes quarterly, giving STRC investors more frequent income but potentially greater reinvestment management. STRC trades much closer to par ($95.01) versus STRD ($66.00), signaling that the market has priced in different risk or recovery expectations between the two structures. STRD's non-cumulative designation means skipped dividends do not accrue to shareholders—a material credit risk that STRC's variable structure implicitly sidesteps.
Who each is best for
STRC: Fits investors seeking a lower, more stable income stream from MicroStrategy's capital structure while accepting the reinvestment cadence of semi-monthly distributions. Appeals to those comfortable with variable-rate equity preferreds where dividend resets aim to anchor price near par.
STRD: Designed for investors chasing a high current yield and willing to accept a deeply discounted price and non-cumulative dividend risk in exchange for a higher percentage payout on their current investment. Suits those with a long holding horizon and conviction that MicroStrategy's ability to maintain the 10% fixed rate will stabilize the discount.
Key risks to know
- MicroStrategy concentration and Bitcoin volatility. Both securities are backed by a single issuer whose financial performance and asset value (primarily Bitcoin holdings) are tightly linked to crypto price swings. A sharp Bitcoin downturn could pressure MicroStrategy's equity capital and dividend coverage.
- STRD's non-cumulative structure and distribution risk. If MicroStrategy skips or reduces the quarterly dividend, missed payments do not accrue—shareholders simply lose that income. STRC's variable mechanism provides some buffer against this, but STRD offers none.
- STRD's deep discount and potential capital loss. Trading at $66.00 versus an implied par value, STRD carries embedded principal risk if the discount widens further or if the preferred is called at par (creating upside-downside asymmetry favoring holders only if the price recovers).
- Preferred equity subordination. Both securities rank junior to MicroStrategy's debt in liquidation. In a severe stress event, common and preferred equity could face significant impairment even if the company survives.
Bottom line
STRC offers a more modest, reset-stabilized yield with lower price volatility; STRD offers a much higher current yield but at the cost of a steep discount, non-cumulative risk, and greater sensitivity to MicroStrategy's dividend coverage. If you value income stability and price predictability, STRC's variable-rate reset structure stands out; if you're drawn to maximum current yield and have conviction in MicroStrategy's ability to sustain dividends despite a discounted valuation, STRD's fixed 10% coupon may compensate. Past performance does not predict future results, and both securities depend entirely on MicroStrategy's solvency and willingness to fund dividends.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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