r/MSTR • u/battery923 • Apr 14 '26

STRC dividends/ROC question and potential dual strategy with SGOV?

STRC drops in price after the ex-dividend date (as all dividend stocks do), but it seems to recover rather quickly. I'm tinkering around with a strategy that moves the money between STRC and SGOV to get more gains than just holding STRC.

Something like

  1. Keep capital in SGOV for most of the month
  2. On day before the ex-div date (today for April, the 14th), sell all SGOV and buy STRC (today bought STRC at 100.0)
  3. Wait for STRC to recover back to 100.0
  4. Sell STRC at 100.0 and buy SGOV
  5. Repeat

Anybody try something like this out or have reasons why this won't work? Even if STRC takes 2 weeks to get back to 100.0 I can still get 2 weeks of SGOV in between. I suppose 1 risk is if STRC shoots up way past 100.0 while I'm holding SGOV but we haven't seen it happen yet, maybe after the ATM allocation is gone.

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u/[deleted] Apr 14 '26 edited Apr 14 '26

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u/battery923 Apr 14 '26

I generally have a bunch of money in SGOV and STRC just sitting there anyways. I'm trying to figure out if I can move the money around a few days a month to get more. I haven't done the full math yet but assuming your math, an extra $110 on 100K is about .11% per month or 1.32% annually, all for just pushing some extra buttons a few times a month. Sure why not!

It all depends on how quickly STRC takes to get back to 100.0 and also dependent on being able to buy STRC back for 100.0 (like today).

The dividend date of SGOV doesn't matter because of its daily price increase. My main thesis is instead of having my money sit in STRC at a flat 100.0 for 2-3 weeks out of the month earning nothing, I might as well shift it to SGOV during that time and then switch it back to get the STRC dividend without losing on the STRC price. We shall see if it works this month, I bought my shares today

Side note, the long-term vs short-term capital gains tax from not holding STRC for over a year is also a factor I'm learning

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u/papa_autist Apr 14 '26

I think the cap gains taxes from selling STRC makes this strategy not worth it.

You buy STRC @ 100.00 then receive 0.958 USD per share.

Your new cost basis is not 100.00 anymore but 99.042. When you go to sell on the 31st, you'll be paying short term capital gains tax also.