Nintendo has released its Q2 FY26 earnings results, announcing an increase in the dividends shareholders will receive in the next payout. This change reflects a more generous approach to distributing profits, benefiting investors.
**Updated 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 figures were then rounded up to the nearest 1 yen.
Going forward, both methods will see an increase, with dividends now calculated by dividing 40% of consolidated operating profit and 60% of consolidated profit, respectively.
**Nintendo’s Explanation 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 represents a positive development for shareholders as Nintendo will now be distributing a larger portion of its earnings. The announcement also comes at a time when the company has recently increased its internal profit forecast for FY26, signaling strong confidence in future performance.
For more detailed information, you can 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 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
