3M Company (NYSE:MMM) will release earnings results for the second quarter before the opening bell on Friday, July 18.

Analysts expect the Saint Paul, Minnesota-based company to report quarterly earnings at $2.01 per share, up from $1.93 per share in the year-ago period. 3M projects to report quarterly revenue of $6.05 billion, compared to $6.25 billion a year earlier, according to data from Benzinga Pro.

On July 9, Barclays analyst Julian Mitchell maintained 3M with an Overweight rating and raised the price target from $164 to $170..

With the recent buzz around 3M, some investors may be eyeing potential gains from the company's dividends. Currently, 3M offers an annual dividend yield of 1.85% — a semi-annual dividend amount of 73 cents per share ($2.92 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 $323,786 or around 2,055 shares. For a more modest $100 per month or $1,200 per year, you would need $64,757 or around 411 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($2.92 in this case). So, $6,000 / $2.92 = 2,055 ($500 per month), and $1,200 / $2.92 = 411 shares ($100 per month).

Note that dividend yield can change on a rolling basis; the dividend payment and 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 remains unchanged. Conversely, if the dividend payment decreases, so will the yield.

MMM Price Action: Shares of 3M gained 0.6% to close at $157.56 on Wednesday.

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