Deere & Company (NYSE:DE) investors may be eyeing potential dividend gains ahead of the company’s third-quarter earnings report on Thursday, Aug. 20.

Currently, Deere has an annual dividend yield of 1.10%, with a quarterly dividend of $1.62 per share ($6.48 per year).

To figure out how to earn $500 monthly from Deere, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we divide this amount by DE’s $6.48 dividend: $6,000 / $6.48 = 926 shares.

So, an investor would need to own approximately $545,155 worth of Deere, or 926 shares to generate a monthly dividend income of $500.

Assuming a more conservative goal of $100 per month ($1,200 annually), we do the same calculation: $1,200 / $6.48 = 185 shares, or $108,913 in total, to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price both 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 reduces its dividend payments, its dividend yield will fall.

DE Price Action

Shares of Deere fell by 0.9% to close at $381.17 on Thursday.

Quarterly earnings should come in at $4.70 per share. That’s down from $4.75 per share in the year-ago period. The consensus estimate for Deere’s quarterly revenue is $10.73 billion. It reported $10.36 billion last year, according to Benzinga Pro.

JPMorgan analyst Tami Zakaria, on Aug. 14, maintained Deere with a Neutral and lowered the price target from $590 to $570.

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