Preferred Stock Comparison
STRC vs STRF: Which Is the Better Pick in 2026?
A head-to-head comparison of Strategy Variable Rate Series A Perpetual Stretch Preferred Stock and Perpetual Strife Preferred Stock covering yield, cost, risk, and income potential.
Data updated August 14, 2026
Best for
- STRCInvestors who want the steadier, bond-like income of a preferred security.
- STRFInvestors who want higher current income (10.42% vs 6.29% for STRC).
Side-by-side snapshot
| Metric | STRC | STRF |
|---|---|---|
| Full name | Strategy Variable Rate Series A Perpetual Stretch Preferred Stock | Perpetual Strife Preferred Stock |
| Issuer | Strategy | Strategy |
| Last Close | $94.78 as of August 14, 2026 | $96.21 as of August 14, 2026 |
| Distribution yield | 6.29% | 10.42% |
| Distribution Safety Score™ | 81 | 50 |
| 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% fixed coupon through MicroStrategy's most senior 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 STRF if you want higher current income (10.42% 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 STRF over the trailing twelve months, posting a 8.96% total return against -9.48%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 12.35% a year versus -9.75% for STRF. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | Since Jul 2025 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|
| STRC | 2.47% | 8.96% | 12.35% | 22.2% | 0.18 | 0.27 | -24.3% |
| STRF | -2.17% | -9.48% | -9.75% | 24.0% | -0.60 | -0.85 | -22.0% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 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 STRF (Perpetual Strife Preferred Stock) are both dividend-paying preferred stocks, but they take different approaches.
STRF offers the higher yield at 10.42% 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 STRF would produce $86.83/month, at current distribution rates.
Strategy & risk
Both STRC and STRF 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. STRF (Perpetual Strife Preferred Stock) is a preferred stock.
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Frequently asked questions
What is the current distribution yield for STRC and STRF?
STRC currently distributes 6.29% and STRF 10.42%, 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 STRF better for dividend income?
It depends on your goals. STRF 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 STRF?
Both STRC (Strategy Variable Rate Series A Perpetual Stretch Preferred Stock) and STRF (Perpetual Strife 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 10.42%), expense ratio (— vs —), and issuer (Strategy vs Strategy).
Can I hold both STRC and STRF?
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 STRF 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, STRF scores 50, 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 STRF generate?
At current rates, $10,000 in STRC would generate roughly $52.42 per month ($629.00 annually). The same in STRF would produce about $86.83 per month ($1,042.00 annually).
Which has performed better historically, STRC or STRF?
STRC has outpaced STRF over the trailing twelve months, posting a 8.96% total return against -9.48%. Measured from Jul 2025 — when the younger fund began trading — STRC has compounded at 12.35% a year versus -9.75% for STRF. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
More comparisons to explore
Popular comparisons
STRC vs STRF — at a glance
Generated August 15, 2026.
Overview
STRC and STRF are both perpetual preferred stocks issued by MicroStrategy, offering senior equity claims on a company whose business model centers on Bitcoin holdings and cloud analytics software. They differ fundamentally in how their dividends work: STRC resets its variable rate monthly and pays twice a month, while STRF locks in a 10% fixed coupon paid quarterly. Both trade below par, reflecting market pricing of MicroStrategy's credit risk and the interest-rate environment.
How they differ
The biggest distinction is payment structure. STRC's variable rate resets monthly to encourage trading near $100 par and reduce price swings, while STRF commits to a fixed 10% coupon regardless of market conditions. This means STRC's current 6.29% distribution rate can move with MicroStrategy's cost of capital, whereas STRF's 10.42% yield is contractually locked in. STRC pays twice monthly; STRF pays quarterly. Because both are senior preferred securities on the same issuer, their credit risk profiles overlap — both depend on MicroStrategy's ability to service debt from its Bitcoin holdings and software revenue. STRF's fixed coupon creates more predictable cash flow but also exposes you to interest-rate risk if rates fall and the company decides to call the shares; STRC's flexibility trades stability for the possibility of rate cuts if MicroStrategy's financial position improves.
Who each is best for
STRC: Fits investors who want semi-monthly income and prefer a rate structure that adjusts with the issuer's credit conditions, accepting lower current yield in exchange for potential downside protection if market rates decline.
STRF: Fits investors seeking a higher contractual yield and can tolerate quarterly payment timing, willing to accept the risk that a fixed coupon won't adjust if MicroStrategy's credit quality deteriorates or if rate cuts make the coupon less attractive relative to new issues.
Key risks to know
- Single-issuer concentration: Both securities depend entirely on MicroStrategy's financial health. Any material decline in Bitcoin prices, crypto sentiment, or the company's ability to service its debt could affect both simultaneously.
- Preferred equity subordination and call risk: As perpetual preferred stocks, both securities sit behind all debt. If MicroStrategy faces distress, these dividends can be suspended or cut. Additionally, if rates fall significantly, the company may call the shares at par, capping upside.
- Bitcoin price exposure: MicroStrategy's primary asset is Bitcoin. A sustained downturn in Bitcoin's market value could impair the company's financial position and threaten dividend capacity on both securities.
- STRC rate-reset risk: Although variable-rate resets are designed to stabilize price, if MicroStrategy's credit spread widens sharply, the reset mechanism may not keep pace with market repricing, and STRC could trade at a wider discount to par.
- STRF interest-rate risk: The locked 10% coupon becomes less competitive if the broader rate environment falls. Early call is possible if rates decline, forcing reinvestment at lower yields.
Bottom line
If you want semi-monthly income and prefer a dividend that flexes with the issuer's credit conditions, STRC's variable structure offers that trade-off; if you prioritize a higher, contractually locked yield and can accept quarterly payments and call risk, STRF's 10% coupon stands out. Both carry material concentration risk tied to MicroStrategy and Bitcoin, so holdings should be sized accordingly. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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