Aramark (NYSE:ARMK) will release earnings for its second quarter before the opening bell on Tuesday, May 12.

Analysts expect the company to report quarterly earnings of 48 cents per share, up from 34 cents per share in the year-ago period. The consensus estimate for Aramark's quarterly revenue is $4.76 billion (it reported $4.28 billion last year), according to Benzinga Pro.

Ahead of quarterly earnings, UBS analyst Joshua Chan, on April 8, maintained an Aramark Buy rating and raised the price target from $47 to $48.

With the recent buzz around Aramark, some investors may be eyeing potential gains from the company's dividends, too. As of now, Aramark has an annual dividend yield of 1.06%, which is a quarterly dividend amount of 12 cents per share (48 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 $563,500 or around 12,500 shares. For a more modest $100 per month or $1,200 per year, you would need $112,700 or around 2,500 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.48 in this case). So, $6,000 / $0.48 = 12,500 ($500 per month), and $1,200 / $0.48 = 2,500 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both fluctuate over time.

How that works: The dividend yield is computed 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.

ARMK Price Action: Shares of Aramark rose 0.1% to close at $45.08 on Friday.

Photo by Jonathan Weiss via Shutterstock