Pfizer Inc. (NYSE:PFE) will release earnings results for the second quarter before the opening bell on Tuesday, Aug. 5.

Analysts expect the pharmaceutical company to report quarterly earnings of 57 cents per share, down from 60 cents per share in the year-ago period. Pfizer projects to report quarterly revenue of $13.53 billion, compared to $13.28 billion a year earlier, according to data from Benzinga Pro.

Some investors may be eyeing potential gains from the company's dividends. Currently, Pfizer offers an annual dividend yield of 7.32%, which is a semi-annual dividend amount of 43 cents per share ($1.72 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 $81,933 or around 3,488 shares. For a more modest $100 per month or $1,200 per year, you would need $16,396 or around 698 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.72 in this case). So, $6,000 / $1.72 = 3,488 ($500 per month), and $1,200 / $1.72 = 698 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.

PFE Price Action: Shares of Pfizer rose 0.9% to close at $23.49 on Friday.

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