RPM International Inc. (NYSE:RPM) will release earnings for its third quarter before the opening bell on Wednesday, April 8.

Some of the company’s investors may be eyeing potential gains from the company's dividends. Currently, RPM has an annual dividend yield of 2.2%. That’s a quarterly dividend amount of 54 cents per share ($2.16 a year).

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

Next, divide that amount by RPM's $2.16 dividend: $6,000 / $2.16 = 2,778 shares.

So, an investor would need to own approximately $272,161 worth of RPM, or 2,778 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 / $2.16 = 556 shares, or $54,471 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 decreases its dividend payment, the dividend yield will decrease.

RPM Price Action: Shares of RPM International fell by 2.6% to close at $97.97 on Thursday.

Analysts expect the company to report earnings of 35 cents per share on Wednesday. That's the same as the 35 cents per share in the year-ago period. The consensus estimate for RPM's quarterly revenue is $1.55 billion (it reported $1.48 billion last year), according to Benzinga Pro.

Ahead of quarterly earnings, UBS analyst Joshua Spector, on Thursday, maintained a Neutral rating on RPM International and lowered the price target from $119 to $108.

With the recent buzz around RPM,

Photo via Shutterstock