Does anyone know what is Nintendo's policy regarding holding their dividend when earnings come down? Looking at their cash flow on Reuters back to 2004, it doesn't look like they significantly lowered their dividend in any year Looking at 2004 to 2007, it looks like they hold the dividend around 16% to 22% of operating earnings (significantly higher in 2006).
What's not clear is whether a single bad earnings year would greatly reduce the dividend or not. The answer depends on the company's internal guidelines for the dividend. Some corporations make the dividend a function of actual earnings. Other corporations target an estimated three year earnings average. Other corporations seem to hold tight to their dividends even in very trying conditions that extend to multiple years. Which of those cases is Nintendo?