One More Reason to Buy Micron Stock (MU): The Company Just Raised Its Dividend 30%

FomoAnxiety · 2026-03-27T01:46:35+00:00

Micron Technology's stock surged 303% in the past year, prompting a 30% increase in its quarterly dividend to $0.15 per share. Analysts view this move positively, citing sustainability and strong demand for memory chips amid AI growth.

FomoAnxiety

2026-03-27 01:46:35

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Micron Technology’s MU -6.97% ▼ stock has been on a tear over the past year, rising an incredible 303%. Now, management has given investors even more reason to buy shares, having raised the quarterly dividend by 30%.

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Going forward, Micron will pay its shareholders a quarterly distribution of $0.15 per share, up 30.4% from the previous dividend of $0.115. The new dividend will be payable on April 15 of this year to shareholders of record as of March 30.

Analysts applauded the increased dividend as a way to further reward shareholders. They also say that Micron’s dividend looks sustainable given that the yield is only 0.13% after the latest increase. Micron, a semiconductor company that manufactures computer memory and data storage products, first paid a dividend in 2021.

Tech Stocks and Dividends

Most technology companies pay paltry dividends and seldom increase them. Google parent company Alphabet GOOGL -3.44% ▼ only began paying a dividend in 2024. Since then it has increased the dividend by one cent to $0.21 per share. Other technology giants such as Amazon AMZN -1.97% ▼ have never paid a dividend, saying they prefer to reinvest profits in future growth.

In Micron’s case, the company said it is looking to reward shareholders even as the company’s stock surges due to strong global demand and a shortage of the memory chips that are critical to artificial intelligence (AI) data centers. The dividend increase comes after Micron recently reported that its revenue nearly tripled from a year earlier in the fourth quarter of 2025.

The 30% dividend increase is also impressive given that Micron recently broke ground on a massive $100 billion manufacturing plant in New York State that it expects to be operational in 2028.

Is MU Stock a Buy?

Micron stock has a consensus Strong Buy rating among 27 analysts. That rating is based on 25 Buy and two Hold recommendations issued in the last three months. The average MU price target of $537.57 implies 42% upside from current levels.

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