How to Make $500 a Month in Micron Stock Ahead of the Third Quarter Earnings Report

Micron Technology, Inc. (NASDAQ:MU) is set to release third-quarter earnings results after the close of business on Wednesday.

Analysts expect the Boise, Idaho-based company to report quarterly earnings of 48 cents per share, compared with a loss of $1.43 per share a year earlier. Micron is expected to report revenue of $6.23 billion for the quarter, according to Benzinga Pro.

On Tuesday, Rosenblatt analyst Hans Mosesmann reiterated Micron Technology with a buy and a $225 price target.

Given the recent buzz surrounding Micron, some investors may also be looking to the company’s dividend potential. Micron currently offers an annual dividend yield of 0.33%, which translates to a quarterly dividend amount of 11.5 cents per share (46 cents per year).

So how can investors use the dividend yield to regularly receive $500 per month?

To earn $500 a month or $6,000 a year in dividends alone, you would need an investment of about $1,840,628 or about 13,043 shares. For a more modest $100 a month or $1,200 a year, you would need $368,182, or about 2,609 shares.

Read this: The 3 best tech stocks that could save your portfolio in June

To count: Divide your 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 earnings on MU

Keep in mind that the dividend yield can change continuously because both the dividend payment and the share price change over time.

How it’s working: The dividend yield is calculated by dividing the annual amount of dividend paid by the current share 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 will increase to 5% ($2/40).

Likewise, changes in dividend payments can impact profitability. If a company increases its dividend, profitability will also increase, provided the share price remains the same. Conversely, if dividend payments decline, profitability will also decline.

MU price action: Micron shares gained 1.5% to close Tuesday at $141.12.

Check this out: How to Find Dividend Stocks: Scan, Analyze and Capture with Benzinga Pro

Photo: NPS_87/Shutterstock.com

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This article How to Make $500 a Month on Micron Stock Ahead of the Third Quarter Earnings Report originally appeared on Benzinga.com