Micron Technology, Inc. (NASDAQ:MU) will release earnings results for the third quarter, after the closing bell on Wednesday.
Analysts expect the company to report quarterly earnings at $1.61 per share, up from 62 cents per share in the year-ago period. Micron Technology projects to report quarterly revenue at $8.85 billion, compared to $6.81 billion a year earlier, according to data from Benzinga Pro.
On Monday, Rosenblatt analyst Kevin Cassidy maintained Micron Technology with a Buy rating and maintained a $172 price target.
With the recent buzz around Micron Technology, some investors may be eyeing potential gains from the company’s dividends too. As of now, Micron Technology offers an annual dividend yield of 0.36%, which is a quarterly dividend amount of 12 cents per share (46 cents a year).
To figure out how to earn $500 monthly from Micron Technology, we start with the yearly target of $6,000 ($500 x 12 months).
Next, we take this amount and divide it by Micron’s $0.46 dividend: $6,000 / $0.46 = 13,043 shares.
So, an investor would need to own approximately $1,668,330 worth of Micron Technology, or 13,043 shares to generate a monthly dividend income of $500.
Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $0.46 = 2,609 shares, or $333,717 to generate a monthly dividend income of $100.
Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.
The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.
For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).
Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).
Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.
MU Price Action: Shares of Micron gained by 4.8% to close at $127.91 on Tuesday.
