Some investors rely on dividends for growing their wealth, and if you’re one of those dividend sleuths, you might be intrigued to know that Nintendo Co., Ltd. (TSE:7974) is about to go ex-dividend in just four days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company’s books as a shareholder in order to receive the dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn’t show on the record date. Accordingly, Nintendo investors that purchase the stock on or after the 29th of September will not receive the dividend, which will be paid on the 1st of December.
The company’s upcoming dividend is JP¥44.00 a share, following on from the last 12 months, when the company distributed a total of JP¥162 per share to shareholders. Calculating the last year’s worth of payments shows that Nintendo has a trailing yield of 1.9% on the current share price of JP¥8339.00. We love seeing companies pay a dividend, but it’s also important to be sure that laying the golden eggs isn’t going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it’s growing.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part – they are all under $10bn in marketcap – there is still time to get in early.
Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Nintendo paid out 53% of its earnings to investors last year, a normal payout level for most businesses. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. Over the last year it paid out 56% of its free cash flow as dividends, within the usual range for most companies.
It’s positive to see that Nintendo’s dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.
View our latest analysis for Nintendo
Click here to see the company’s payout ratio, plus analyst estimates of its future dividends.
Have Earnings And Dividends Been Growing?
Companies that aren’t growing their earnings can still be valuable, but it is even more important to assess the sustainability of the dividend if it looks like the company will struggle to grow. If earnings decline and the company is forced to cut its dividend, investors could watch the value of their investment go up in smoke. It’s not encouraging to see that Nintendo’s earnings are effectively flat over the past five years. It’s better than seeing them drop, certainly, but over the long term, all of the best dividend stocks are able to meaningfully grow their earnings per share. Earnings growth has been slim and the company is paying out more than half of its earnings. While there is some room to both increase the payout ratio and reinvest in the business, generally the higher a payout ratio goes, the lower a company’s prospects for future growth.
The main way most investors will assess a company’s dividend prospects is by checking the historical rate of dividend growth. In the past 10 years, Nintendo has increased its dividend at approximately 27% a year on average.
To Sum It Up
Should investors buy Nintendo for the upcoming dividend? Earnings per share have barely grown, and although Nintendo paid out over half its earnings and free cash flow last year, the payout ratios are within a normal range for most companies. Overall we’re not hugely bearish on the stock, but there are likely better dividend investments out there.
With that being said, if dividends aren’t your biggest concern with Nintendo, you should know about the other risks facing this business. Case in point: We’ve spotted 2 warning signs for Nintendo you should be aware of.
If you’re in the market for strong dividend payers, we recommend checking our selection of top dividend stocks.
Valuation is complex, but we’re here to simplify it.
Discover if Nintendo might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Have feedback on this article? Concerned about the content?Get in touchwith us directly.Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
AMD just hit a trillion dollars. Analysts say it’s fairly valued, but does that price in an agentic world?
The bit that gets overlooked is that AMD nearly went under about ten years ago. What saved it wasn’t AI, it was a manufacturing decision. Intel kept building processors as one big slab of silicon. AMD decided to build them out of several smaller pieces stitched together, which sounds boring and turned out to be everything. Small pieces are cheaper to make, far more of them come out working, and you can upgrade one part without redesigning the whole thing. A company with no money could suddenly iterate faster than a company with plenty. Every AI chip they ship today is built the same way. The trillion-dollar valuation is the payoff from a decision made a decade before anyone said the word “agent.”
I honestly believe that analysts are over estimating how much compute will be needed. Energy will be the ultimate forcing function of compute. That’s scarce. Compute will be optimized.
mitchell_lawler
Market Insights
What happens to energy stocks as the fix gets built?
Conflict around the Strait of Hormuz has led investors to oil and tankers. The trouble is, the antidote to the chokepoints is already being built, and it may not reward the same energy stocks.
108
Sep 18, 2026
About TSE:7974
Nintendo
Develops, manufactures, and sells home <a href="https://comicvibe.com/is-it-possible-to-leave-politics-out-of-entertainment-anymore/” title=”Is it possible to leave politics out of entertainment anymore?”>entertainment products in Japan, the Americas, Europe, and internationally.
Flawless balance sheet with proven track record and pays a dividend.
Similar Companies
-
NEXON
-
Koei Tecmo Holdings
Market Insights
What happens to energy stocks as the fix gets built?MI
mitchell_lawler
Are social media stocks the new Big Tobacco?AL
Alegget
What 13F filings won’t tell you about a billionaire’s stock picksMI
mitchell_lawler
Advertisement
Weekly Picks
Ceazaron Buffalo Potash·2 days ago
Under the radar: This $78M stock controls a $1.5B project and it’ll start producing in a few months
Fair Value:CA$1.0612.3% undervalued
11followersusers have followed this narrative
·0commentsusers have commented on this narrative
·4likesusers have liked this narrative
TO
Tokyoon Novo Nordisk·about 1 month ago
EU#2 – From Humble Beginnings to Global Powerhouse
Fair Value:DKK 851.0470.4% undervalued
80followersusers have followed this narrative
·15commentsusers have commented on this narrative
·25likesusers have liked this narrative
HA
HarishPKon Zoetis·25 days ago
Decision Making Under Ambiguity – A Case Study on Expectations Investing
Fair Value:US$91.321.6% undervalued
10followersusers have followed this narrative
·1commentusers have commented on this narrative
·5likesusers have liked this narrative
RE
RedCandleRxon AppLovin·7 days ago
Why the Market Still Misprices AppLovin as Just a Gaming Network
Fair Value:US$50737.8% undervalued
11followersusers have followed this narrative
·0commentsusers have commented on this narrative
·5likesusers have liked this narrative
RecentlyUpdated Narratives
TimLeeon Kee Ming Group Berhad·about 1 hour ago
Kee Ming’s Next Growth Leg Is Already Taking Shape
Fair Value:RM 3.117.4% undervalued
1followerusers have followed this narrative
·0commentsusers have commented on this narrative
·0likesusers have liked this narrative
CE
Ceazaron Optimi Health·about 4 hours ago
Lululemon’s founder is backing this $27m psychedelics stock. Here’s why I am too.
Fair Value:US$729.1% undervalued
1followerusers have followed this narrative
·0commentsusers have commented on this narrative
·0likesusers have liked this narrative
HY
HyeProfileon BCE·about 5 hours ago
Good AI Data Center and FTTH backed Growth, but wobbly FCF
Fair Value:CA$26.1518.3% undervalued
1followerusers have followed this narrative
·0commentsusers have commented on this narrative
·0likesusers have liked this narrative
Popular Narratives
AnalystConsensusTargeton NVIDIA·about 2 months ago
NVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026
Fair Value:US$302.8325.5% undervalued
1502followersusers have followed this narrative
·8commentsusers have commented on this narrative
·35likesusers have liked this narrative
AN
AnalystConsensusTargeton Alphabet·4 months ago
GOOGL: AI Platform Expansion And Cloud Demand Will Support Durable Performance Amid Competitive Pressures
Fair Value:US$427.8921.0% undervalued
1654followersusers have followed this narrative
·0commentsusers have commented on this narrative
·19likesusers have liked this narrative
AN
AnalystConsensusTargeton Amazon.com·about 1 month ago
AMZN: Acceleration In Cloud And AI Will Drive Margin Expansion Ahead
Fair Value:US$32723.8% undervalued
1673followersusers have followed this narrative
·1commentusers have commented on this narrative
·16likesusers have liked this narrative
