Micron to Pay Dividends This Month… How Much Will You Get if You Own 100 Shares?

▲ Micron (MU) logo/Source: X ©

Micron Technology, which recorded explosive stock price growth this year driven by expanding demand for artificial intelligence (AI) memory, will pay its regular dividend this month. However, the dividend yield is low, and its investment appeal is considered to be more in its growth potential than in dividends.

According to cryptocurrency specialized media Finbold on July 6 (local time), Micron is scheduled to pay a quarterly dividend of $0.15 per share on July 21. This dividend is the same as the previous quarter, indicating that the company has maintained its existing dividend policy. The annual dividend is $0.60 per share, and based on the recent closing price of $975.56, the dividend yield is approximately 0.06%.

To receive this dividend, shares must be held before the ex-dividend date of July 6. Investors who purchase shares after the ex-dividend date will not be eligible for this quarter's dividend. Accordingly, an investor holding 100 shares of Micron stock will receive $15 before tax, and if the current dividend policy is maintained, the annual dividend will be $60 before tax.

Micron is considered one of the biggest beneficiaries of the AI memory market growth this year. The company's stock price has risen by over 700% in the past year, and approximately 242% this year alone, pushing its market capitalization beyond $1.1 trillion. Although the stock price has seen some recent adjustments, the upward trend remains prominent.

Performance also continues to be at record highs. The company recently announced that its fiscal third-quarter revenue was $41.46 billion, explaining that increased demand for High Bandwidth Memory (HBM) used in AI accelerators led to improved performance. Furthermore, it projected current quarter revenue to be approximately $50 billion at the midpoint, and stated that its HBM production capacity is fully secured until 2026 through long-term supply agreements.

The media evaluated Micron's investment point as being in its growth potential rather than dividends. Wall Street also maintains a positive outlook on its long-term growth, expecting continued expansion of AI infrastructure investment. Therefore, it analyzed that investors' expected returns are more likely to come from performance growth and stock price appreciation than from dividends.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*