Nintendo has released its Q2 FY26 earnings results, bringing good news for shareholders: the company is set to increase dividend payouts in the next round of payments.
Previously, Nintendo’s dividend policy calculated the annual dividend per share based on the higher of two methods. The first method involved dividing 33% of consolidated operating profit by the total number of outstanding shares. The second method was based on taking half of consolidated profit. Both numbers were then rounded up to the nearest 1 yen.
Going forward, Nintendo is raising both thresholds in its dividend policy. The new calculations will use 40% of consolidated operating profit and 60% of consolidated profit, respectively.
In the Dividend Policy Update press release, Nintendo explained the rationale behind the 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.”
This adjustment is a positive development for shareholders, as Nintendo will be distributing a larger fraction of its earnings through dividends. This comes at a timely moment, as the company has recently increased its internal profit forecast for FY26.
For more detailed information, visit Nintendo’s Investor Relations website.
**Disclaimer:** This article is intended for educational purposes only and should not be considered investment advice. Please assess your own investment time horizon and risk tolerance, and consult with a financial advisor before making any investment decisions.
**Full Disclosure:** At the time of this article, Shacknews’ primary shareholder Asif A. Khan, his family members, or his company Virtue LLC held long positions in Nintendo via NTDOY shares.
https://www.shacknews.com/article/146662/nintendo-ntdoy-new-dividend-policy
