Micron Technology Inc (NASDAQ:MU) shares jumped to a fresh all-time high on Wednesday before pulling back slightly.
Trading up more than 220% year-to-date as of Christmas Eve, Micron’s momentum was fueled by an outlook that shattered Wall Street expectations, according to Benzinga Pro.
The company reported first-quarter revenue of $13.64 billion and adjusted earnings of $4.78 per share on Dec. 17, well above analyst estimates. The primary catalyst for the 2025 surge is Micron’s role in artificial intelligence infrastructure.
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With the recent buzz around Micron, some investors may be eyeing potential gains from the company’s dividends too. As of now, Micron has an annual dividend yield of 0.16%, which is a quarterly dividend amount of 11.5 cents per share (46 cents a year).
To figure out how to earn $500 monthly from Micron, 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 $3,739,167 worth of Micron, 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 $747,948 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.
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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.
