How To Earn $500 A Month From Micron Stock Ahead Of Q1 Earnings

Micron Technology, Inc. (NASDAQ:MU) will release earnings results for its first quarter after the closing bell on Wednesday, Dec. 17.

Analysts expect the company to report quarterly earnings at $3.93 per share, up from $1.79 per share in the year-ago period. The consensus estimate for Micron’s quarterly revenue is $12.81 billion, compared to $8.71 billion a year earlier, according to data from Benzinga Pro.

The estimated revenue would mark a new record for the company, surpassing the $11.31 billion reported in the fourth quarter. Micron has broken its quarterly record for two consecutive quarters, with a third potential record this week.

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 0.20%, 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 $3,032,628 or around 13,043 shares. For a more modest $100 per month or $1,200 per year, you would need $606,619 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 fell 2.1% to close at $232.51 on Tuesday.

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