Bath & Body Works, Inc. (NYSE:BBWI) will release its fourth quarter earnings before the opening bell on Wednesday, March 4.

Meanwhile, some of the retailer’s investors are eyeing potential gains from the company's dividends. Currently, Bath & Body Works has an annual dividend yield of 3.63%. That’s a quarterly dividend amount of 20 cents per share (80 cents a year).

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

Next, take this amount and divide it by Bath & Body Works' $0.80 dividend: $6,000 / $0.80 = 7,500 shares.

So, an investor would need to own approximately $165,300 worth of Bath & Body Works, or 7,500 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 / $0.80 = 1,500 shares, or $33,060 to generate a monthly dividend income of $100.

Note that dividend yield can change on a rolling basis; the dividend payment and stock price 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.

BBWI Price Action: Shares of Bath & Body Works fell by 3.2% to close at $22.04 on Monday.

Analysts expect the company to report earnings of $1.77 per share. That's down from $2.09 per share in the year-ago period. The consensus estimate for Bath & Body Works' quarterly revenue is $2.61 billion (it reported $2.79 billion last year), according to Benzinga Pro.

Ahead of quarterly earnings, Barclays analyst Adrienne Yih maintains an Equal-Weight rating and raised the price target from $20 to $21.

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