What is the Declaration Data?
The declaration date is when a company’s board of directors officially announces an upcoming dividend payment. This announcement includes key details like the dividend amount, payment date, and record date. It’s the starting point of the dividend payment process.
Table of Contents
Meanings:
The declaration date is like a company’s “save the date” notice for dividend payments. It’s when:
✅ The board formally approves the dividend
✅ The per-share amount is revealed
✅ Key dates (payment, record, ex-dividend) are announced
Key Point: This is just the announcement – no money changes hands yet. The actual payment comes later.
Example:
“On August 3, 2023, Coca-Cola declared a $0.46 per share quarterly dividend, payable on October 2 to shareholders of record on September 15.“
Why Should Investors Care About This Date?
3 Big Reasons It Matters:
- Investment Planning
- Lets you calculate potential income
- Helps time stock purchases
- Financial Health Signal
- Regular declarations show stability
- Increased dividends often indicate confidence
- Tax Planning
- Dividends declared in different tax years may have different implications
Pro Tip: Companies rarely reverse declared dividends – it’s seen as a strong commitment.
The Dividend Timeline: 4 Critical Dates Explained
(Perfect for featured snippets!)
| Date | What Happens | Investor Action Needed |
|---|---|---|
| Declaration Date | Company announces dividend | Mark your calendar |
| Ex-Dividend Date | Deadline to buy shares and qualify | Must own shares before this date |
| Record Date | Company reviews shareholder list | Be on the official list |
| Payment Date | Dividend is distributed | Money arrives in your account |
Visual Timeline:
Real-World Example: Microsoft’s Dividend (2023)
Let’s break down MSFT’s actual dividend announcement:
- Declaration Date: November 29, 2022
- Dividend Amount: $0.68 per share
- Ex-Dividend Date: February 15, 2023
- Record Date: February 16, 2023
- Payment Date: March 9, 2023
What This Means:
- Investors needed to buy by February 14 to qualify
- Shareholders on record February 16 received payment March 9
How Declaration Dates Impact Stock Prices
Typical Market Reactions:
📈 Short-Term:
- Small price bump around declaration (investor enthusiasm)
- Especially for dividend increases
📉 Exceptions:
- Dividend cuts cause significant drops
- No change if expected (mature dividend stocks)
Historical Note:
AT&T’s 2022 dividend cut announcement led to a 10% single-day drop.
FAQs About Dividend Declaration Dates
❓ How often do companies declare dividends?
Most U.S. companies declare quarterly, but some pay monthly or annually.
❓ Where can I find upcoming declaration dates?
Best sources:
- Company investor relations pages
- Nasdaq Dividend Calendar
- Yahoo Finance Dividend Section
❓ Can a declared dividend be canceled?
Extremely rare – usually only during severe crises (like COVID-19).
❓ Do all stocks have declaration dates?
No – only dividend-paying stocks. Growth stocks often reinvest profits instead.
Key Takeaways
🔹 The declaration date is the starting gun for dividend payments
🔹 Smart investors track it to plan purchases and taxes
🔹 Combined with other key dates, it helps maximize dividend income
💡 Ready to build your dividend portfolio? Try our Dividend Growth Calculator to project future income!