Hi,

After notifying our data provider (Hemscott) of the MSFT dividend issue, they have responded as such:

"the 2005 10-K's Income Statement quotes the Annual Dividend of $3.40.  Further investigation in the notes reveals that this is based upon the Declared Date over the previous 12 months (see Note 12(1), page 57 of 10K).  If one used the Pay date, then the yearly dividends would be $3.32.  Our methodology is to use the company's value from the Income Statement. [...]"

Please let me know if you feel this policy is unsound, thanks!

dave

Thanks very much for looking into this!

I find it unexpected to report annual dividends based on what was declaried during a FY rather than what was paid during a FY. But I woudn't go so far as to describe the practice as "unsound" (S&P does the same thing).

What I've come to expect to see in the SSG data files is annual dividends paid (not declared) during a FY. However, I suppose the contents of the SSG data file fields are not sufficiently well defined to specify one approach over the other (or whether one-time dividends, like the $3/sh MSFT dividend in 2005, should be included or excluded).

>Thanks very much for looking into this!

Finally, one could say. We apologize for not investigating and resolving (kinda) the issue sooner, better late than never? :)  Thanks again Jim for pointing out the issue, at least we now know the 'why'!