Yield to call

Yield to call is the annualised return on a preferred share if the holder pays today's price, receives dividends, and the issuer then redeems the share at its call price on an assumed date. It is the internal rate of return of that set of cash flows.

price = Σ dividend ÷ (1 + r)^t + call price ÷ (1 + r)^T

where T is the assumed call date. Unlike effective yield, it counts the gain or loss between today's price and the call price.

Where it applies

Most digital credit has no general optional call, so yield to call is often not meaningful:

• STRC: Strategy may redeem all or part at $101 plus unpaid dividends at any time, provided at least $250m of stated amount stays outstanding after a partial redemption (8-K, 29 July 2025).
• SATA: Strive may redeem all or part at $110 plus accumulated dividends, provided at least $50m of stated amount stays outstanding after a partial redemption (424B5, 7 November 2025).
• STRF, STRK, STRD, STRE, SATS: only clean-up and tax redemptions, which depend on events and have no date.

Illustration (hypothetical)

STRC closed at $96.18 on 21 August 2026 with a 12.00% rate (FWP, 24 August 2026). If it were called at $101 exactly one year later, the holder would receive about $12.00 in dividends plus a $4.82 price gain. That is a one-year return of roughly 17.5% before tax and before the effect of payment timing. This is arithmetic on an assumption, not an expectation: STRC has no scheduled call date.

Limits

Because the issuer chooses whether and when to call, yield to call depends entirely on the assumed date. 21DC shows it only where callable is true and a call date or window can be stated. Otherwise it is left out.

What to check in the filing

• The call price and earliest call date
• Minimum amount that must remain after a partial call
• Whether accumulated dividends are added to the call price