Academy Sports and Outdoors, Inc. (NASDAQ:ASO) will release earnings for its fourth quarter before the opening bell on Tuesday, March 17.

Analysts expect the company to report quarterly earnings of $2.05 per share. That’s up from $1.96 per share in the year-ago period. The consensus estimate for Academy Sports and Outdoors' quarterly revenue is $1.75 billion (it reported $1.68 billion last year), according to Benzinga Pro.

With the recent buzz around Academy Sports and Outdoors, some investors may be eyeing potential gains from the company's dividends, too. As of now, Academy Sports and Outdoors has an annual dividend yield of 1.06%. That’s a quarterly dividend amount of 15 cents per share (60 cents a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $563,400 or around 10,000 shares. For a more modest $100 per month or $1,200 per year, you would need $112,680 or around 2,000 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.60 in this case). So, $6,000 / $0.60 = 10,000 ($500 per month), and $1,200 / $0.60 = 2,000 shares ($100 per month).

Note: Dividend yields can change on a rolling basis, as both dividend payments and stock prices fluctuate over time.

How that works: Compute the dividend yield by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced 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 rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

ASO Price Action: Shares of Academy Sports and Outdoors rose 1.5% to close at $56.34 on Friday.

Ahead of quarterly earnings, on March 10, UBS analyst Michael Lasser maintained a Neutral rating on the stock and raised the price target from $54 to $60.

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