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Dividends paid vs. declared

The board's declaration versus the cash that leaves, and why the two can differ, with Microsoft's fiscal 2026 10-K.

The short answer

A dividend is declared when the board votes to pay it, and it is paid when the cash actually leaves the company. Those two events can fall in different reporting periods, so the amount declared for a year and the amount shown as dividends paid on the cash flow statement are not always the same.

Two different moments

Declaration creates a liability (dividends payable) until the payment date. The dividends page covers what a dividend is and how yield is worked out; ex-dividend and record dates cover who receives it. This page is about the cash versus the declaration. The cash outflow sits in the financing section of the cash flow statement, usually labeled dividends paid or common stock cash dividends paid. The amount declared often appears in the statement of shareholders' equity, in a note, or as dividends declared per share.

Microsoft's fiscal 2026 figures

Microsoft's 10-K for fiscal 2026 states that its board declared dividends totaling $27.0 billion for fiscal 2026 and $24.7 billion for fiscal 2025. Cash dividends declared per common share were $3.64 in fiscal 2026. On the cash flow statement, the financing line is labeled common stock cash dividends paid. The cash figure for fiscal 2026 was $26.4B. The declared total and the cash paid are close, but they are not identical, which is what you expect when some dividends declared late in the year are paid in the next year, or when a payment settles a dividend declared in the prior year.

Source: Microsoft 10-K for fiscal 2026, filed Jul 29, 2026

Why the two can differ

Timing. A dividend declared in the last weeks of a fiscal year may be paid after year end. The declaration belongs to this year; the cash belongs to next year.
Per-share versus total cash. Dividends declared per share times the share count at a record date may not match cash paid, because the share count changes and because some declarations straddle year end.
Special or additional dividends can widen the gap in a single year if they are declared and paid in different periods.

Common questions

What is a declared dividend?

The amount the board has voted to pay. Microsoft's fiscal 2026 10-K reports dividends declared totaling $27.0 billion, and cash dividends declared of $3.64 per common share.

What is dividends paid?

The cash that actually went out to shareholders during the period, shown in the financing section of the cash flow statement. Microsoft labels the line common stock cash dividends paid.

Why wouldn't the two match?

Because declaration and payment can fall in different fiscal years. A year-end declaration paid in January shows up as declared this year and paid next year.

Which figure is used in a payout ratio?

The dividend payout ratio page uses dividends paid as a share of net income. Other presentations use dividends declared. The 10-K tells you which figure you are looking at.

Where do I find both?

Declared amounts are often in the equity statement, a dividends note, or a per-share line. Cash paid is on the cash flow statement.

Disclosures

Editor holdings: The editor holds no position in any company named on this page. As of Nov 11, 2026.
Compensation: Nobody paid for this page. No affiliate links on this page.
Sources: Each company's own SEC filings, linked next to each number.
Last updated: Nov 10, 2026

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