Nintendo 2022 stock split very welcome for smaller investors
In October 2022, investors with a smaller budget can now finally buy Nintendo shares more easily. The Japanese gaming company split its shares in the ratio 1:10.
Many companies in Japan announce stock splits, with monthly splits throughout the year. This compares to only a couple of stock splits in Europe and the United States. A big name is Nintendo Co from Japan, whose main products include game machines such as portable and console game machines and software, as well as trump and Carta (Japanese-style playing cards).
On October 1, 2022, Nintendo executed a 10-for-1 stock split. This brings down the stock price in Tokio from almost 60.000 yen to less than 6.000 yen. This is very important since most Japanese stocks can only be bought with a minimaal investment of 100 shares. This means prior to the stock split an investment in Nintendo was only possible when someone invested tens of thousends of dollars.
NINTENDO ANNUAL DIVIDEND (FY 2017 - 2021)
- 2021: ¥ 203 per share
- 2020: ¥ 222 per share
- 2019: ¥ 109 per share
- 2018: ¥ 81 per share
- 2017: ¥ 59 per share
Well now this stock split has happened you can buy 100 shares (minimum required) for a total of 5.820 yen. This is equal to approximately $4.155 at current currency exchange rates. Nintendo is one of the biggest listed companies in Japan with a market cap of $55 billion. The company pays a semi-annual dividend to investors and has a dividend yield of 3.5%. Nintendo last traded ex-dividend on March 30, 2022 for a final dividend of 1.410 yen, which is 410 yen per share if we include the recent stock split.
The dividend history of Nintendo Co was very strong with five consecutive years of double digit dividend growth through 2021. This year, the dividend for FY 2021, was cut however by a small 8.6%, ending the five year streak of increased dividends. Japan only has a couple of true dividend aristocrats.