Micron Technologies Inc. (NASDAQ:MU) shares hit a new all-time high on Wednesday before pulling back slightly.
Up more than 220% year-to-date through Christmas Eve, Micron’s momentum was fueled by an outlook that shattered Wall Street’s expectations, according to Benzinga Pro.
The company on Dec. 17 reported first-quarter revenue of $13.64 billion and adjusted earnings of $4.78 per share, well above analyst estimates. The main 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 might also be looking at potential gains from the company’s dividends. Currently, Micron has an annual dividend yield of 0.16%, or a quarterly dividend of 11.5 cents per share (46 cents per year).
To learn how to make $500 per month with Micron, we start with the annual goal of $6,000 ($500 x 12 months).
Then we take that 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 of Micron, or 13,043 shares, to generate monthly dividend income of $500.
Assuming a more conservative goal of $100 per month ($1,200 per year), we do the same calculation: $1,200 / $0.46 = 2,609 shares, or $747,948 to generate monthly dividend income of $100.
Note that the dividend yield can change continuously, as the dividend payment and stock price both fluctuate over time.
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The dividend yield is calculated by dividing the annual dividend payout 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 drops to $40, the dividend yield would increase to 5% ($2/$40).
Additionally, the dividend payout itself may also change over time, which may also impact the dividend yield. If a company increases its dividend payout, the dividend yield will increase even if the stock price stays the same. Likewise, if a company decreases its dividend payout, the dividend yield will decrease.
