NetApp, Inc. (NASDAQ:NTAP) will release its first-quarter earnings report after the closing bell on Wednesday, Sept. 2.

Analysts expect the company to report quarterly earnings of $2.12 per share, up from $1.55 per share in the year-ago period. The consensus estimate for NetApp’s quarterly revenue is $1.84 billion. It reported $1.56 billion last year, according to Benzinga Pro.

Ahead of quarterly earnings, BofA Securities analyst Wamsi Mohan, on Monday, maintained NetApp with a Neutral and raised the price target from $180 to $206.

With the recent buzz around NetApp, some investors may be eyeing potential gains from the company’s dividends too. As of now, NTAP has an annual dividend yield of 1.14%, which translates to a quarterly dividend of 52 cents per share ($2.08 per year).  

So, how can investors leverage 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 $528,417 or around 2,885 shares. For a more modest $100 per month or $1,200 per year, you would need $105,683 or around 577 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.08 in this case). So, $6,000 / $2.08 = 2,885 ($500 per month), and $1,200 / $2.08 = 577 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: The dividend yield is computed 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.

NTAP Price Action: Shares of NetApp fell 1.2% to close at $183.16 on Tuesday.

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