Nintendo has released its Q2 FY26 earnings results, bringing good news for shareholders: the upcoming dividend payouts will offer a larger share of the profits.
**Dividend Policy Changes**
Previously, Nintendo’s annual dividend per share was determined by taking the higher of two calculations:
– 33% of consolidated operating profit divided by the total number of outstanding shares, or
– Half of consolidated profit,
with both figures rounded up to the nearest 1 yen.
However, moving forward, Nintendo has increased these proportions to:
– 40% of consolidated operating profit, and
– 60% of consolidated profit,
again rounding up to the nearest 1 yen for both calculations.
**Reason for the Update**
In its Dividend Policy Update press release, Nintendo explained the rationale behind this change:
> “The entertainment business in which we are engaged is extremely fast-paced and its future is difficult to predict. We believe that paying dividends based on periodic profits and losses, which are linked to profits, is the type of shareholder return that suits the characteristics of our business, and our basic policy for shareholder returns is to pay out dividends. While this basic policy for shareholder returns remains the same, taking into consideration the current business environment and financial position of the Company group, we will change our dividend policy as follows in order to strengthen our profit return to shareholders.”
**What This Means for Shareholders**
This update represents a positive development for Nintendo investors, as the company will be distributing a greater portion of its earnings as dividends. The timing is particularly favorable, coming shortly after Nintendo raised its internal profit forecast for FY26.
For those interested in further details, Nintendo’s Investor Relations website offers comprehensive information.
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**Important Notice**
This article is for educational purposes only and should not be considered investment advice. Always assess your own investment time horizon and risk tolerance, and consult a financial advisor before making any investment decisions.
**Full Disclosure**
At the time of publication, Shacknews’ primary shareholder, Asif A. Khan, along with his family members and his company Virtue LLC, held long positions in Nintendo through NTDOY shares.
https://www.shacknews.com/article/146662/nintendo-ntdoy-new-dividend-policy