Wells Fargo & Company (NYSE:WFC) will release earnings for its second quarter before the opening bell on Tuesday, July 14.

Analysts expect the bank to report quarterly earnings of $1.71 per share. That’s up from $1.60 per share in the year-ago period. The consensus estimate for Wells Fargo’s quarterly revenue is $21.81 billion. It reported $20.82 billion last year, according to Benzinga Pro.

Ahead of quarterly earnings, Bank of America Securities analyst Ebrahim Poonawala maintained a Buy rating on Wells Fargo and raised the price target from $95 to $102. UBS analyst Erika Najarian also maintained a Buy rating, but cut the price target from $105 to $104.

With the recent buzz around Wells Fargo, some investors may be eyeing potential gains from the company’s dividends too. Currently, WFC has an annual dividend yield of 2.07% and a quarterly dividend of 45 cents per share ($1.80 annually).

To figure out how to earn $500 per month from Wells Fargo, start with an annual target: $6,000 ($500 x 12 months).

Next, we divide this amount by WFC’s $1.80 dividend: $6,000 / $1.80 = 3,333 shares.

So, an investor would need to own approximately $289,671 worth of Wells Fargo, or 3,333 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 / $1.80 = 667 shares, or $57,969 to generate a monthly dividend income of $100.

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

WFC Price Action: Shares of Wells Fargo rose by 1.6% to close at $86.91 on Thursday.

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