Micron Technology Inc. (MU) shares hit a fresh all-time high on Wednesday before pulling back slightly, capping off a remarkable year for the memory chip giant.

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. 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 all this buzz around Micron, some investors might be eyeing potential gains from the company's dividends too. But here's where reality sets in: Micron currently offers an annual dividend yield of just 0.16%, which translates to a quarterly dividend of 11.5 cents per share, or 46 cents annually.

The $500 Monthly Dividend Math

To figure out how to earn $500 monthly from Micron, we start with the yearly target of $6,000 ($500 multiplied by 12 months).

Next, we divide this amount by Micron's $0.46 annual dividend: $6,000 divided by $0.46 equals 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 modest goal of $100 monthly ($1,200 annually), we run the same calculation: $1,200 divided by $0.46 equals 2,609 shares, or $747,948 to generate a monthly dividend income of $100.

Understanding Dividend Yield Fluctuations

Keep in mind that dividend yield changes constantly, as both the dividend payment and stock price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price moves, the dividend yield moves inversely.

For example, if a stock pays an annual dividend of $2 and trades at $50, its dividend yield is 4%. However, if the stock price rises to $60, the dividend yield drops to 3.33% ($2 divided by $60). Conversely, if the stock price falls to $40, the dividend yield increases to 5% ($2 divided by $40).

Additionally, the dividend payment itself can change over time, which also impacts the dividend yield. If a company increases its dividend payment, the dividend yield will rise even if the stock price remains unchanged. Similarly, if a company decreases its dividend payment, the dividend yield will fall.

MU Price Action: Shares of Micron gained 3.8% to close at $286.68 on Wednesday.