Microsoft Corporation (NASDAQ:MSFT) will release its fiscal year fourth quarter financial results, after the closing bell on Tuesday.

Analysts expect the Redmond, Washington-based company to report quarterly earnings at $2.93 per share, up from $2.69 per share in the year-ago period. Microsoft is seen posting revenue of $64.39 billion, compared to $56.19 billion a year earlier, according to data from Benzinga Pro.

On July 23, Piper Sandler analyst Brent Bracelin reiterated Microsoft with an Overweight rating, while increasing the price target from $465 to $485.

With the recent buzz around Microsoft, some investors may be eyeing potential gains from the company's dividends too. As of now, Microsoft offers an annual dividend yield of 0.70%, which is a quarterly dividend amount of 75 cents per share ($3.00 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 $853,460 or around 2,000 shares. For a more modest $100 per month or $1,200 per year, you would need $170,692 or around 400 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($3.00 in this case). So, $6,000 / $3.00 = 2,000 ($500 per month), and $1,200 / $3.00 = 400 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.

MSFT Price Action: Shares of Microsoft rose 0.3% to close at $426.73 on Monday.

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