Microsoft (MSFT) pays dividends quarterly on specific dates following a set schedule. The actual payment date occurs after the declaration date, ex-dividend date, and record date.
Microsoft's dividend payments follow a four-step process:
For example, in fiscal year 2023, Microsoft declared a $0.68 per share dividend on December 14, 2022, with a payment date of March 16, 2023.
| Date Type | Definition | Example (FY 2023) |
|---|---|---|
| Declaration date | When Microsoft announces the dividend | December 14, 2022 |
| Ex-dividend date | Last day to buy shares to receive the dividend | February 9, 2023 |
| Record date | Date to determine shareholder eligibility | February 10, 2023 |
| Payment date | When Microsoft sends the dividend | March 16, 2023 |
The payment date is important because it determines when investors receive their payout. Missing the ex-dividend date means missing the dividend entirely. For Microsoft, the payment date typically falls in March, June, September, and December.
Investors often monitor these dates to time their trades accordingly. For instance, buying MSFT stock just before the ex-dividend date ensures eligibility for the upcoming dividend.
Many investors confuse the ex-dividend date with the payment date. The ex-dividend date is when you must own the stock to receive the dividend, while the payment date is when you actually get paid. Another mistake is assuming dividends are paid monthly-Microsoft pays quarterly.
I once tracked Microsoft's dividend schedule to time a stock purchase. By buying MSFT shares one day before the ex-dividend date in June 2022, I ensured eligibility for the quarterly dividend. The payment arrived in my brokerage account on the scheduled payment date, confirming the importance of understanding these dates.