Constellation Brands, Inc. (NYSE:STZ) will release earnings for its fourth quarter after the closing bell on Wednesday, April 8.

Analysts expect the beer and spirits company to report quarterly earnings of $1.71 per share. That’s down from $2.63 per share in the year-ago period. The consensus estimate for Constellation's quarterly revenue is $1.88 billion (it reported $2.16 billion last year), according to Benzinga Pro.

With the recent buzz around Constellation Brands, some investors may be eyeing potential gains from the company's dividends too. As of now, Constellation Brands has an annual dividend yield of 2.63%, with a quarterly dividend of $1.02 per share ($4.08 annually).  

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 $228,373 or around 1,471 shares. For a more modest $100 per month or $1,200 per year, you would need $45,644 or around 294 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($4.08 in this case). So, $6,000 / $4.08 = 1,471 ($500 per month), and $1,200 / $4.08 = 294 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: Compute 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 gained 2.7% to close at $155.25 on Monday.

Ahead of quarterly earnings, Barclays analyst Lauren Lieberman, on Thursday, maintained Constellation Brands with an Equal-Weight rating. She also raised the price target from $148 to $151. Needham analyst Gerald Pascarelli reiterated the stock with a Buy and maintained a $180 price target.

Photo via Shutterstock