Philip Morris International Inc. (NYSE:PM) will release earnings for its fourth quarter before the opening bell on Friday, Feb. 6.

Analysts expect the company to report quarterly earnings of $1.70 per share, compared to $1.55 per share in the year-ago period. The consensus estimate for Philip Morris’ quarterly revenue is $10.4 billion (it reported $9.71 billion last year), according to Benzinga Pro.

On Jan. 23, Philip Morris urged a key U.S. regulator to back a modified-risk label for its ZYN nicotine pouches. The company said its experts presented scientific findings to the FDA’s Tobacco Products Scientific Advisory Committee as part of a modified-risk tobacco product bid.

With the recent buzz around Philip Morris, some investors may be eyeing potential gains from the company’s dividends too. As of now, Philip Morris has an annual dividend yield of 3.26%, which is a quarterly dividend amount of $1.47 per share ($5.88 a year).  

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 $183,998 or around 1,020 shares. For a more modest $100 per month or $1,200 per year, you would need $36,800 or around 204 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($5.88 in this case). So, $6,000 / $5.88 = 1,020 ($500 per month), and $1,200 / $5.88 = 204 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.

PM Price Action: Shares of Philip Morris rose by 1.9% to close at $180.39 on Wednesday.

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