Micron Technology, Inc. (NASDAQ:MU) is expected to report third-quarter earnings results after the closing bell on Wednesday.
Analysts expect the Boise, Idaho-based company to report quarterly profit of 48 cents per share, versus a year-ago loss of $1.43 per share. Micron is expected to post $6.23 billion in revenue this quarter, according to data from Benzinga Pro.
Analyst Hans Mosesmann of Rosenblatt on Tuesday maintained Micron Technology with a Buy rating and a price target of $225.
With the recent rumors surrounding Micron, some investors may also be looking at potential gains from the company’s dividends. As of now, Micron offers an annual dividend yield of 0.33%, which is a quarterly dividend amount of 11.5 cents per share (46 cents per year).
So how can investors leverage the dividend yield to put $500 in their pocket every month?
To earn $500 per month or $6,000 per year from dividends alone, you’ll need an investment of about $1,840,628 or about 13,043 shares. For a more modest amount of $100 per month or $1,200 per year, you’ll need $368,182 or about 2,609 shares.
Read this: 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).
View more earnings on MU
Keep in mind that the dividend yield can be constantly changing because the dividend payout and the stock price both fluctuate over time.
How that works: The dividend yield is calculated by dividing the annual dividend payment by the current share price.
For example, if a stock pays an annual dividend of €2 and is currently worth €50, the dividend yield is 4% (€2/€50). However, if the stock price rises 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 affect returns. If a company increases its dividend, the yield will also increase, provided the share price remains the same. Conversely, if the dividend payment decreases, the return also decreases.
MU Price promotion: Shares of Micron rose 1.5% to close at $141.12 on Tuesday.
Check this out: How to Find Dividend Stocks: Scan, Analyze & Capture With Benzinga Pro
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This article How to Make $500 a Month with Micron Stock Ahead of its Third Quarter Earnings Report originally appeared on Benzinga.com
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