As ConocoPhillips (NYSE:COP) prepares to release second-quarter earnings on Thursday, Aug. 6, some investors may be eyeing potential gains from the company’s dividends.

As of now, ConocoPhillips has an annual dividend yield of 2.85%. That’s a quarterly dividend amount of 84 cents per share ($3.36 a year).

To earn $500 monthly from ConocoPhillips, start with a yearly target: $6,000 ($500 x 12 months).

Next, take this amount and divide it by COP’s $3.36 dividend: $6,000 / $3.36 = 1,786 shares.

So, an investor would need to own approximately $210,641 worth of ConocoPhillips, or 1,786 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 monthly ($1,200 annually), we do the same calculation: $1,200 / $3.36 = 357 shares, or $42,105 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis; The dividend payment and the stock price fluctuate over time.

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

For example, if a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

Further, the dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

COP Price Action

Shares of ConocoPhillips fell by 1% to close at $117.94 on Tuesday.

Analysts expect the company to report quarterly earnings of $2.89 per share, up from $1.42 per share in the year-ago period. The consensus estimate for COP’s quarterly revenue is $19.83 billion. It reported $14.74 billion last year, according to Benzinga Pro.

As per the latest news, ConocoPhillips, on July 17, agreed to acquire a 42% interest in BP Plc’s (NYSE:BP) BP Energy Company of Kirkuk Limited (BP ECKL).

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