How To Earn $500 A Month From Micron Stock Ahead Of Q2 Earnings Report

Micron Technology, Inc. MU is set to release earnings results for its second quarter, after the closing bell on Wednesday.

Analysts expect the company to report a quarterly loss of 26 cents per share, versus a year-ago loss of $1.91 per share in the year-ago period. Micron is projected to report quarterly revenue of $5.34 billion, according to data from Benzinga Pro.

On Tuesday, UBS analyst Timothy Arcuri maintained Micron with a Buy and raised the price target from $95 to $120, while Baird analyst Tristan Gerra maintained the stock with a Neutral and boosted the price target from $78 to $115.

With the recent buzz around Micron, some investors may be eyeing potential gains from the company’s dividends too. As of now, Micron offers an annual dividend yield of 0.72%, which is a quarterly dividend amount of 11.5 cents per share (46 cents a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $1,226,042 or around 13,043 shares. For a more modest $100 per month or $1,200 per year, you would need $245,246 or around 2,609 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.46 in this case). So, $6,000 / $0.46 = 13,043 ($500 per month), and $1,200 / $0.46 = 2,609 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock's current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

MU Price Action: Shares of Micron gained 0.2% to close at $94.00 on Tuesday.

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