Ahead of H&R Block, Inc‘s (NYSE:HRB) fourth-quarter earnings release on Tuesday, Aug. 11, investors may be eyeing potential gains from the company’s dividends.

Currently, HRB has an annual dividend yield of 3.66%. That equates to a quarterly dividend amount of 42 cents per share ($1.68 a year).

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

Next, we take this amount and divide it by H&R Block’s $1.68 dividend: $6,000 / $1.68 = 3,571 shares.

So, an investor would need to own approximately $164,087 worth of H&R Block, or 3,571 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 / $1.68 = 714 shares, or $32,808 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 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.

HRB Price Action

Shares of H&R Block gained by 0.2% to close at $45.95 on Thursday.

Analysts expect the company to report quarterly earnings of $2.21 per share, down from $2.27 per share in the year-ago period. The consensus estimate for H&R Block’s quarterly revenue is $1.12 billion. It reported $1.11 billion last year, according to Benzinga Pro.

Stephens & Co. analyst Thomas Wendler initiated coverage on H&R Block on July 28 with an Equal-Weight rating and set a price target of $47.

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