Micron Technology, Inc.. (NASDAQ:MU) is expected to report financial results for its third quarter after the close on Wednesday.
Analysts expect the Boise, Idaho-based company to report quarterly profit of 48 cents per share, compared with a loss of $1.43 per share a year ago. Micron is expected to post revenue of $6.23 billion for the quarter, according to data from Benzinga Pro.
On Tuesday, Rosenblatt analyst Hans Mosesmann maintained Micron Technology with a Buy and a $225 price target.
With the recent buzz around Micron, some investors might also be looking at potential gains from the company’s dividends. Currently, Micron offers an annual dividend yield of 0.33%, or a quarterly dividend of 11.5 cents per share (46 cents per year).
So how can investors leverage its dividend yield to pocket $500 per month?
To earn $500 per month or $6,000 per year from dividends alone, you would need an investment of approximately $1,840,628, or approximately 13,043 shares. For a more modest $100 per month or $1,200 per year, you would need $368,182, or about 2,609 shares.
Read this: The Top 3 Tech Stocks That Could Save Your Portfolio in June
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).
See more income on MU
Note that the dividend yield can change continuously, as the dividend payment and stock price both fluctuate over time.
How it works : The dividend yield is calculated by dividing the annual dividend payment by the current stock price.
For example, if a stock pays an annual dividend of $2 and is currently valued 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).
Likewise, changes in dividend payments can impact yield. If a company increases its dividend, the yield will also increase, provided the stock price remains the same. Conversely, if the dividend payment decreases, the yield will also decrease.
MU Price Action: Micron shares gained 1.5% to close at $141.12 on Tuesday.
Check this out: How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro
Photo: NPS_87/Shutterstock.com
“ACTIVE INVESTORS’ SECRET WEAPON” Boost your stock game with the #1 “news and everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Get the latest stock analysis from Benzinga?
This article How to Make $500 a Month from Micron Stock Ahead of Q3 Earnings Report originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
