Jabil Inc. (NYSE:JBL) will release earnings for its third quarter before the opening bell on Wednesday, June 17.

Analysts expect the Florida-based manufacturer to report quarterly earnings of $3.10 per share. That’s up from $2.55 per share in the year-ago period. The consensus estimate for Jabil's quarterly revenue is $8.61 billion (it reported $7.83 billion last year), according to Benzinga Pro.

Jabil investors may be eyeing potential dividend gains. As of now, the company has an annual dividend yield of 0.09%, which translates to a quarterly dividend of 8 cents per share (32 cents per year).  

So, how can investors use its dividend yield to pocket a regular $500 per month?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $6,606,750 or around 18,750 shares. For a more modest $100 per month or $1,200 per year, you would need $1,321,350 or around 3,750 shares.

To Calculate

Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.32 in this case). So, $6,000 / $0.32 = 18,750 ($500 per month), and $1,200 / $0.32 = 3,750 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 the dividend yield 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.

JBL Price Action

Shares of Jabil fell 2.8% to close at $352.36 on Wednesday.

Ahead of quarterly earnings, UBS analyst David Vogt, on Tuesday, maintained Jabil with a Neutral and raised the price target from $273 to $380.

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