How To Earn $500 A Month From Micron Stock Ahead Of Q3 Earnings Report

by Avi Kapoor Benzinga Staff Writer

Zinger Key Points

A more conservative goal of $100 monthly dividend income would require owning 2,609 shares of Micron.
An investor would need to own $1,840,628 worth of Micron to generate a monthly dividend income of $500.
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Micron Technology, Inc. MU is set to release earnings results for its third quarter, after the closing bell on Wednesday.

Analysts expect the Boise, Idaho-based company to report quarterly earnings at 48 cents per share, versus a year-ago loss of $1.43 per share. Micron is projected to post revenue of $6.23 billion for the quarter, according to data from Benzinga Pro.

On Tuesday, Rosenblatt analyst Hans Mosesmann maintained Micron Technology with a Buy and a $225 price target.

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 0.33%, 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 $1,840,628 or around 13,043 shares. For a more modest $100 per month or $1,200 per year, you would need $368,182 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 1.5% to close at $141.12 on Tuesday.

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