Nintendo has released its Q2 FY26 earnings results, bringing good news for shareholders: the company is set to increase the dividends paid out in the next payout cycle.
**Dividend Policy Update**
Previously, Nintendo’s annual dividend per share was determined by selecting the higher value between two calculations:
1. Dividing 33% of consolidated operating profit by the total number of outstanding shares, or
2. Taking half of consolidated profit.
Both numbers were then rounded up to the nearest 1 yen.
Going forward, Nintendo is adjusting both methods to increase shareholder returns. The updated policy will calculate dividends by:
– Dividing 40% of consolidated operating profit by the total number of outstanding shares, and
– Taking 60% of consolidated profit.
This change marks a significant increase in the proportion of profits returned to shareholders.
**Reasoning Behind the Change**
Nintendo explained the rationale for this update in its Dividend Policy Update press release:
> “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.”
**Implications for Shareholders**
This update is a positive development for shareholders, as Nintendo will now pay out a larger fraction of its earnings going forward. This comes at a favorable time, with the company recently increasing its internal profit forecast for FY26.
For more detailed information, please visit Nintendo’s [Investor Relations website](https://www.nintendo.co.jp/ir/en/).
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**Disclaimer**
This article is intended for educational purposes only and should not be taken as investment advice. Please consider your own investment time horizon and risk tolerance, and consult a financial advisor before making any investment decisions.
**Full Disclosure:** At the time of writing, 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