Nintendo has released its Q2 FY26 earnings results, bringing good news for shareholders: a larger portion of profits will be distributed as dividends in the upcoming payout.
### Updated Dividend Policy
Previously, Nintendo determined its annual dividend per share by choosing the higher amount between two calculations:
1. 33% of consolidated operating profit divided by the total number of outstanding shares, rounded up to the nearest 1 yen.
2. Half of consolidated profit, also rounded up to the nearest 1 yen.
Going forward, both these calculations will see an increase:
– The first method will now use 40% of consolidated operating profit.
– The second method will be based on 60% of consolidated profit.
### Reason for the Change
In the Dividend Policy Update press release, Nintendo explained the rationale behind this adjustment:
> “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 a clear win for shareholders, as Nintendo commits to paying out a larger fraction of its earnings going forward. This announcement coincides with the company’s recent upward revision of its internal profit forecast for FY26, further bolstering investor confidence.
For more information, 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 considered investment advice. Please assess your own investment goals, risk tolerance, and consult with a financial advisor before making any investment decisions.
**Full Disclosure:** At the time of writing, Shacknews’ primary shareholder Asif A. Khan, his family members, or his company Virtue LLC held a long position in Nintendo through NTDOY shares.
https://www.shacknews.com/article/146662/nintendo-ntdoy-new-dividend-policy
