Signet Jewelers Limited (NYSE:SIG) will release earnings results for the third quarter before the opening bell on Tuesday, Dec. 2.

Analysts expect the company to report quarterly earnings at 29 cents per share, up from 24 cents per share in the year-ago period. The consensus estimate for Signet's quarterly revenue is $1.37 billion, compared to $1.35 billion a year earlier, according to data from Benzinga Pro.

On Nov. 25, Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Signet and a $92 price target.

With the recent buzz around Signet Jewelers, some investors may be eyeing potential gains from the company's dividends too. As of now, Signet Jewelers offers an annual dividend yield of 1.24%, with a quarterly dividend of 32 cents per share ($1.28 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 $485,067 or around 4,688 shares. For a more modest $100 per month or $1,200 per year, you would need $97,055 or around 938 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.28 in this case). So, $6,000 / $1.28 = 4,688 ($500 per month), and $1,200 / $1.28 = 938 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.

SIG Price Action: Shares of Signet Jewelers rose 3.6% to close at $103.47 on Wednesday.

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