How To Earn $500 A Month From Micron Stock

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. 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. 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 3.8% to close at $286.68 on Wednesday. Read More: Top 2 Tech And Telecom Stocks That May Implode In December Photo: Shutterstock