Been looking into STRC (Strategy preferred) and SATA (Strive preferred) for my income sleeve. Both yield 11-12%, pay monthly.
Then I noticed their ex-dividend dates are offset by about 2 weeks. Got me thinking...
What if you moved your whole position from one to the other to capture both dividends each month? On paper:
* $250k position
* Collect SATA dividend (\~$2,552)
* Sell SATA, buy STRC
* Collect STRC dividend (\~$2,292)
* Sell STRC, buy back SATA
* Repeat
Gross: \~$4,844/mo before costs. Even with $100/mo in spread slippage, that's $4,744/mo net — almost 23% yield.
Obvious concerns:
* Short-term gains = ordinary income tax
* Price could dump more than the dividend
* Timing execution
* These aren't FDIC insured
Compared to just holding 50/50 (\~11.6% yield), rotation is way more work. But an extra $27k/year on $250k is hard to ignore.
Anyone actually doing this? What am I missing?