Nintendo (NTDOY) changes dividend policy to return more value to shareholders
Nintendo has released its Q2 FY26 earnings results, and shareholders can look forward to receiving a larger share of the profits in the upcoming dividend payouts.
### Changes to Dividend Policy
Previously, Nintendo’s annual dividend per share was determined by taking the higher of two calculations:
1. Dividing 33% of consolidated operating profit by the total number of outstanding shares.
2. Taking half of consolidated profit.
Both amounts were then rounded up to the nearest 1 yen.
Going forward, Nintendo is increasing these thresholds. The dividend calculation will now be based on:
– 40% of consolidated operating profit, or
– 60% of consolidated profit,
with both figures rounded up to the nearest 1 yen as before.
### Reason for the Update
In the 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 is good news for Nintendo shareholders, as the company will be distributing a larger portion of its earnings as dividends moving forward. The announcement comes at a time when Nintendo has also increased its internal profit forecast for FY26, signaling strong financial performance ahead.
For more information, you can visit Nintendo’s [Investor Relations website](https://www.nintendo.co.jp/ir/en/).
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**Disclaimer:**
This article is for educational purposes only and should not be considered investment advice. Please take into account your own investment time horizon and risk tolerance, and consult with a financial advisor before making any investment decisions.
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**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 through NTDOY shares.
https://www.shacknews.com/article/146662/nintendo-ntdoy-new-dividend-policy
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