How To Earn $500 A Month From Micron Stock Ahead Of Q4 Earnings

Micron Technology, Inc. MU is set to release earnings results for its fourth quarter after the closing bell on Wednesday, Sept. 25.

After viewing the report, investors may be eyeing potential gains from the company's dividends.

Boise, Idaho-based Micron currently offers an annual dividend yield of 0.49%. That’s 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.

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 1.8% at last check Wednesday and are currently trading at $95.69, according to Benzinga Pro.

Analysts expect Micron to report quarterly earnings at $1.13 per share, versus a year-ago loss of $1.07 per share. The company is projected to post quarterly revenue of $7.64 billion. That’s up from just over $4 billion a year earlier, a

On Sept. 17, Micron announced the availability of the Crucial P310 2280 Gen4 NVMe solid-state drive (SSD) which expands Micron's P310 portfolio to address PCs, laptops and PlayStation 5. The company said a version with a heatsink will be released in the coming months, suited for use with PlayStation 5 and desktop gaming PCs.

Read More:

• Wall Street’s Most Accurate Analysts’ Views On 3 Tech Stocks Delivering High-Dividend Yields

Image: Shutterstock