Constellation Brands, Inc. (NYSE:STZ) will release earnings for its first quarter after the closing bell on Tuesday, June 30.

Analysts expect the Rochester, New York-based company to report quarterly earnings of $3.25 per share, up from $3.22 per share in the year-ago period. The consensus estimate for Constellation’s quarterly revenue is $2.4 billion. It reported $2.52 billion last year, according to Benzinga Pro.

Ahead of quarterly earnings, JPMorgan analyst Drew Levine maintained Constellation Brands at Neutral and raised the price target from $168 to $169 on Thursday.

With the recent buzz around Constellation, some investors may be eyeing potential gains from the company’s dividends too. As of now, Constellation Brands has an annual dividend yield of 2.85%, with a quarterly dividend of $1.03 per share ($4.12 per year).  

So, how can investors leverage 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 $210,319 or around 1,456 shares. For a more modest $100 per month or $1,200 per year, you would need $42,035 or around 291 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.12 in this case). So, $6,000 / $4.12 = 1,456 ($500 per month), and $1,200 / $4.12 = 291 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.

STZ Price Action: Shares of Constellation Brands rose 1% to close at $144.45 on Thursday.

Photo via Shutterstock