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Microsoft (MSFT) Dividend Capture: 0.23% per event (0.9% annualized)

Updated May 6, 202620 eventshigh

Microsoft (MSFT) has touched its pre-ex close within 30 trading days in 100% of the last 20 ex-dividend events, with a median time-to-touch of 1 trading day (limit-order recovery basis). The dividend is below the typical daily price swing (signal-to-noise 0.10), meaning ordinary day-to-day noise can easily exceed the dividend itself.

Versus its sector, MSFT sits roughly in line with the Technology sector benchmark of 95%. The sector median time-to-touch is 1 trading day, matching the peer pace.

Historical base rates are not predictions; transaction costs, slippage, and ordinary-income tax on short holding periods can materially reduce realized profit. The next confirmed ex-dividend date is May 21, 2026, with an expected dividend of $0.91.

Touch rate (30d)
100%+5pp vs sector
Median days-to-touch
1din line with sector
Signal-to-noise
0.10-0.06 vs sector

Recovery engine

TL;DR over the most recent 20 events.

30-day touch rate
100%
+5pp vs sector
Median days-to-touch
1d
in line with sector
Signal-to-noise (div / ATR)
0.10
-0.06 vs sector
Avg gap on ex-date
-0.15%
+0.18pp vs sector
Win rate at MOC exit
65%
Median drawdown during hold
-2.27%
+2.43pp vs sector
Best / worst touch (days)
1 / 21

Next ex-dividend

Confirmed by company declaration.

in 14 days
Dividend
$0.91
Per-event yield
0.23%
Annualized yield
0.87%
Previously paid
Feb 19, 2026 ($0.91)
Last record date
Feb 19, 2026
Last payment date
Mar 12, 2026

How MSFT ranks in Technology

Compared with other stocks in this sector that pass our capture-quality filter (48 tickers). Lower rank number is better on every metric below.

Full sector ranking
  • 30-day touch rate
    #1of 48

    Beats ~98% of peers on this metric

  • Median days to touch
    #1of 48

    Beats ~98% of peers on this metric

  • Signal-to-noise
    #33of 48

    Beats ~31% of peers on this metric

MSFT Dividend Capture History — Last 20 Ex-Dividend Events

Per-event gap on ex-date, the pre-ex close used as the touch target, trading days to first intraday high at or above that level, plus 5/30-day touch flags, drawdown and 5-day P&L for Microsoft (MSFT). For a stricter close-at-bell exit timeline, use the simulator below (MOC mode). td = trading days from ex-date.

  • Q1

    Dividend
    $0.91
    Gap %
    0.27%
    Pre-ex close
    $399.60
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -4.48%
    P&L 5d %
    +0.76%
  • Q4

    Dividend
    $0.91
    Gap %
    1.15%
    Pre-ex close
    $487.12
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -4.56%
    P&L 5d %
    +1.19%
  • Q3

    Dividend
    $0.83
    Gap %
    -0.40%
    Pre-ex close
    $505.72
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -1.76%
    P&L 5d %
    +0.94%
  • Q2

    Dividend
    $0.83
    Gap %
    -0.48%
    Pre-ex close
    $452.94
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -0.93%
    P&L 5d %
    +0.61%
  • Q1

    Dividend
    $0.83
    Gap %
    0.13%
    Pre-ex close
    $414.77
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -8.14%
    P&L 5d %
    -5.16%
  • Q4

    Dividend
    $0.83
    Gap %
    0.97%
    Pre-ex close
    $415.49
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -1.25%
    P&L 5d %
    +2.12%
  • Q3

    Dividend
    $0.75
    Gap %
    0.71%
    Pre-ex close
    $416.86
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -2.29%
    P&L 5d %
    -0.13%
  • Q2

    Dividend
    $0.75
    Gap %
    0.32%
    Pre-ex close
    $416.56
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    0.17%
    P&L 5d %
    +3.53%
  • Q1

    Dividend
    $0.75
    Gap %
    0.43%
    Pre-ex close
    $406.32
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -2.24%
    P&L 5d %
    +1.50%
  • Q4

    Dividend
    $0.75
    Gap %
    0.27%
    Pre-ex close
    $370.27
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -0.88%
    P&L 5d %
    +2.25%
  • Q3

    Dividend
    $0.68
    Gap %
    -0.33%
    Pre-ex close
    $321.86
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -3.20%
    P&L 5d %
    +1.81%
  • Q2

    Dividend
    $0.68
    Gap %
    0.18%
    Pre-ex close
    $311.74
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -0.32%
    P&L 5d %
    +0.89%
  • Q1

    Dividend
    $0.68
    Gap %
    -1.41%
    Pre-ex close
    $272.17
    High touch (td)
    21
    Recovered 5d
    no
    Recovered 30d
    yes
    Drawdown
    -9.69%
    P&L 5d %
    -6.14%
  • Q4

    Dividend
    $0.68
    Gap %
    0.34%
    Pre-ex close
    $241.97
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -1.79%
    P&L 5d %
    +2.60%
  • Q3

    Dividend
    $0.62
    Gap %
    -1.01%
    Pre-ex close
    $292.71
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -10.95%
    P&L 5d %
    -5.57%
  • Q2

    Dividend
    $0.62
    Gap %
    -1.43%
    Pre-ex close
    $266.82
    High touch (td)
    7
    Recovered 5d
    no
    Recovered 30d
    yes
    Drawdown
    -7.64%
    P&L 5d %
    -1.38%
  • Q1

    Dividend
    $0.62
    Gap %
    -0.70%
    Pre-ex close
    $300.47
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -9.63%
    P&L 5d %
    -1.75%
  • Q4

    Dividend
    $0.62
    Gap %
    -0.17%
    Pre-ex close
    $339.51
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -3.35%
    P&L 5d %
    -0.29%
  • Q3

    Dividend
    $0.56
    Gap %
    -0.35%
    Pre-ex close
    $293.08
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -1.51%
    P&L 5d %
    +3.24%
  • Q2

    Dividend
    $0.56
    Gap %
    -1.55%
    Pre-ex close
    $243.08
    High touch (td)
    1
    Recovered 5d
    yes
    Recovered 30d
    yes
    Drawdown
    -1.84%
    P&L 5d %
    +3.69%

MSFT Pre-Ex Touch Time Distribution

20 events analyzedHigh touched pre-ex within 5 trading days: 90% (18 events)
  • ≤ 1 day
    1890%
  • 2–3 days
    00%
  • 4–5 days
    00%
  • 6–10 days
    15%
  • 11–30 days
    15%
  • 30+
    00%

90% within 1d · 90% within 5d · 100% within 30d

MSFT Dividend Capture Calculator — After-Tax Yield

Pre-filled with MSFT's next expected dividend and recent close. Adjust tax rate, holding period and slippage to estimate after-tax capture yield.

Slippage preset

Holding shorter than the IRS 61-day rule disqualifies the dividend from “qualified” status — it is taxed as ordinary income at your marginal rate. Adjust Tax % accordingly.

Display
Gross dividend
$182.00
After-tax dividend
$118.30
Slippage round-trip
-$79.92

Net if price returns to pre-ex
+$38.38
Required recovery to break even
0.00%

Per-event after-tax yield
+0.05%
Annual if all succeed
~2.4%
Scenariosbase rate 100%
Best (limit fills)+$38.38
Average (base rate)+$38.38
Worst (no recovery)$143.62

Open in full calculator →

MSFT Dividend Capture Backtest Simulator

Replay every historical MSFT ex-dividend with two exit strategies: a GTC limit-order at the pre-ex close (limit-order P&L on first intraday touch), or hold for N days and exit at MOC. Pick the window and quarter filter that matches your plan and see realized P&L per event.

Limit window:Quarter:

Sell back at the pre-ex close on the first intraday touch within the window. If it never touches, exit at MOC after the window expires (stop-loss).

Figures are gross — before tax, commissions, and slippage. Percents are per-event return on capital at entry (pre-ex close).

Avg P&L per trade(20 events)-0.19%
Win rate (20 trades)
90%
Cumulative P&L
i
-3.88%Sum of per-event % (not compounded)
Buy & hold (same sample)
i
+69.87%Span: May 19, 2021 → Feb 19, 2026 · long-horizon total return vs repeating capture cycles
Best event
+0.28%
Worst event
-6.14%

Cumulative P&L (equity curve)

Vertical axis: cumulative sum of per-event % (same units as the headline cumulative). Hover dots for exact values.

+0.8%+0.0%-6.2%May 19, 2021 · cumulative +0.23% (sum of returns through this event)Aug 18, 2021 · cumulative +0.42% (sum of returns through this event)Nov 17, 2021 · cumulative +0.60% (sum of returns through this event)Feb 16, 2022 · cumulative +0.81% (sum of returns through this event)May 18, 2022 · cumulative -0.57% (sum of returns through this event)Aug 17, 2022 · cumulative -0.36% (sum of returns through this event)Nov 16, 2022 · cumulative -0.08% (sum of returns through this event)Feb 15, 2023 · cumulative -6.22% (sum of returns through this event)May 17, 2023 · cumulative -6.00% (sum of returns through this event)Aug 16, 2023 · cumulative -5.79% (sum of returns through this event)Nov 15, 2023 · cumulative -5.59% (sum of returns through this event)Feb 14, 2024 · cumulative -5.40% (sum of returns through this event)May 15, 2024 · cumulative -5.22% (sum of returns through this event)Aug 15, 2024 · cumulative -5.04% (sum of returns through this event)Nov 21, 2024 · cumulative -4.84% (sum of returns through this event)Feb 20, 2025 · cumulative -4.64% (sum of returns through this event)May 15, 2025 · cumulative -4.46% (sum of returns through this event)Aug 21, 2025 · cumulative -4.30% (sum of returns through this event)Nov 20, 2025 · cumulative -4.11% (sum of returns through this event)Feb 19, 2026 · cumulative -3.88% (sum of returns through this event)
May 19, 2021Feb 19, 2026

Per-event P&L distribution

20 trades in this sample · bar height ∝ count in each bucket (gross % per event).

1
<-3%
1
-3..-1%
 
-1..0%
 
0%
18
0..1%
 
1..3%
 
>3%

Scenario P&L by event · MSFT (20)

Scenario P&L — updates with exit mode, window, and quarter. History adds gap, touch, drawdown, and a fixed P&L 5d % (MOC). Same per-row % as that column only for MOC + 5d on the same rows. Oldest → newest, gross pre-ex close basis.

Ex-dateP&L
+0.23%
+0.19%
+0.18%
+0.21%
-1.38%
+0.21%
+0.28%
-6.14%
+0.22%
+0.21%
+0.20%
+0.18%
+0.18%
+0.18%
+0.20%
+0.20%
+0.18%
+0.16%
+0.19%
+0.23%

Looking for full price seasonality? See MSFT seasonality →

Frequently asked questions

What is the dividend capture success rate for MSFT?

Across the last 20 ex-dividend events for Microsoft (MSFT), the post-ex intraday high reached the pre-ex close within 30 trading days in 100% of cases, with a median time-to-touch of 1 trading day. We measure recovery via intraday high because that is when a GTC limit-order at the pre-ex close would actually fill, ending the trade at break-even with the dividend pocketed.

How long does it take MSFT to recover its dividend gap?

Historically, MSFT touches its pre-ex close in a median of 1 trading day, with the best case at 1 and the worst case at 21 trading days within our 30-day measurement window. A stricter close-based recovery (mark-to-MOC) is also computed in the database; explore it with the per-ticker simulator’s “Hold N days, exit MOC” mode rather than in the event table.

Is the dividend on MSFT large enough to capture?

MSFT has a signal-to-noise ratio of 0.10 (dividend / 14-day ATR). Values above 1.0 indicate the dividend is larger than the typical daily price swing, making capture trades more viable; below 0.5 means typical daily noise can easily wipe out the gain.

When is the next ex-dividend date for MSFT?

The next ex-dividend date for Microsoft (MSFT) is May 21, 2026, confirmed (declared by the company).

How does MSFT compare to its sector for dividend capture?

Within Technology, the median 30-day pre-ex touch rate is 95%. MSFT sits at 100% — above the sector benchmark.

Why does MSFT dividend capture measure recovery via intraday high, not close?

A realistic capture trade exits via a GTC limit-order at the pre-ex close: the moment the post-ex intraday high touches that level, the order fills and the trader pockets the dividend at break-even. Measuring recovery via close is stricter (mark-to-MOC); we expose that path in the per-ticker simulator as the "Hold N days, exit MOC" mode. The high-based primary metric directly answers the trader-facing question "would my limit have filled?" — close-based answers "would I have been flat at the bell?".

How are dividend capture trades taxed in the US?

Holding period matters. Dividends are "qualified" (taxed at the long-term capital gains rate, 0/15/20%) only when the underlying shares are held for more than 60 days during the 121-day window centered on the ex-dividend date. Dividend capture trades typically hold less than 61 days, so the dividend is taxed at your ordinary income bracket. Always consult a qualified tax advisor.

What are the main risks of a dividend capture strategy?

Three structural risks: (1) the share price may not recover the gap within your holding window; (2) ordinary-income tax can consume the after-tax yield; (3) transaction costs and bid/ask slippage can wipe out small dividends. Historical statistics measure base rates; they do not guarantee any single trade will work.