STRC Dividend Calculator
Estimate your STRC monthly income and tax-equivalent yield. What is STRC?
| Year | Cumulative Received | Remaining Basis ⓘ | Monthly Tax Owed ⓘ | Status ⓘ |
|---|---|---|---|---|
| 1 | $12,000 | $88,000 | — | deferred |
| 2 | $24,000 | $76,000 | — | deferred |
| 3 | $36,000 | $64,000 | — | deferred |
| 4 | $48,000 | $52,000 | — | deferred |
| 5 | $60,000 | $40,000 | — | deferred |
| 6 | $72,000 | $28,000 | — | deferred |
| 7 | $84,000 | $16,000 | — | deferred |
| 8 | $96,000 | $4,000 | — | deferred |
| 9 | $108,000 | $0 | $150.00 | taxable |
| 10 | $120,000 | $0 | $150.00 | taxable |
| 11 | $132,000 | $0 | $150.00 | taxable |
| 12 | $144,000 | $0 | $150.00 | taxable |
| 13 | $156,000 | $0 | $150.00 | taxable |
| 14 | $168,000 | $0 | $150.00 | taxable |
| 15 | $180,000 | $0 | $150.00 | taxable |
What Is STRC?
STRC — Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock — is a publicly traded preferred stock issued by Strategy (formerly MicroStrategy). It trades on Nasdaq near a $100 par value and pays a monthly cash dividend, currently set at a 12% annual rate.
Strategy uses the capital raised from selling STRC shares to buy Bitcoin for its corporate treasury. The dividend rate adjusts automatically to keep the share price anchored around $100:
How Are STRC Dividends Taxed?
STRC dividends are currently classified as return of capital (ROC) for US tax purposes. That means you don't owe income tax when you receive them — instead, each payment reduces your cost basis in the shares.
Once your basis reaches $0, subsequent dividends become taxable at your long-term capital gains rate rather than ordinary income rates. This deferred treatment is why the tax-equivalent yield is significantly higher than the stated rate:
For an investor in a 15% capital gains bracket, a 12% STRC yield is equivalent to earning 14.1% from a fully taxable investment. The higher your bracket, the greater the advantage.
Where Does the Yield Come From?
Bitcoin generates no cash flow on its own — no interest, no dividends, no rent. The 12% yield is funded from three sources:
STRC sits in the middle of Strategy's capital stack — safer than common equity (MSTR) but junior to the company's convertible debt. As long as Bitcoin appreciates faster than the 12% annual cost and capital markets remain open, the structure works. If Bitcoin enters a prolonged decline, the funding mechanism comes under pressure.
STRC is available on most major brokerages. See our guide on where to buy STRC for a full broker comparison.
This calculator is for informational and educational purposes only and does not constitute financial, investment, or tax advice. STRC is not a bank deposit, not FDIC insured, and carries risk of loss. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions.
Featured Bitcoin Charts
Original Rainbow Chart
The original Bitcoin rainbow price chart showing logarithmic regression bands.
RSI
The Relative Strength Index (RSI) is a momentum based visualization.
Bitcoin Fear and Greed Index
Sentiment analysis for Bitcoin & crypto markets, indicating when markets are overly fearful or greedy.
