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Micron Technology, Inc. (NASDAQ:MU) will release earnings for its first quarter, after the closing bell on Wednesday, Dec. 18.
Analysts expect the Boise, Idaho-based company to report quarterly earnings at $1.77 per share, versus a year-ago loss of 95 cents per share. Micron projects to report quarterly revenue of $8.71 billion, compared to $4.73 billion a year earlier, according to data from Benzinga Pro.
The company has beaten analyst revenue estimates in six straight quarters and seven of the last 10 quarters overall.
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 0.42%. That’s 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 $1,551,460 or around 14,286 shares. For a more modest $100 per month or $1,200 per year, you would need $310,270 or around 2,857 shares.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.42 in this case). So, $6,000 / $0.42 = 14,286 ($500 per month), and $1,200 / $0.42 = 2,857 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 0.3% to close at $108.60 on Tuesday.
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