Micron Is Raising Its Dividend by a Whopping 30%. Does That Make MU Stock a Buy Here?

Semiconductor company Micron Technology (MU) recently raised its quarterly dividend from $0.115 per share to $0.15, indicating an increase of 30%. The new dividend accumulates to an annual rate of $0.60 and yields 0.14% on current prices. This dividend hike comes as Micron faces a surge in demand for DRAM and NAND memory chips. 

However, investors have also focused on Micron’s potentially rising capex as the company seeks to expand its infrastructure to support rising demand for memory chips. And, the company landed its first five-year Strategic Customer Agreement (SCA), which reportedly includes detailed multi-year commitments that promote operational stability.