Nordstrom, Inc. (NYSE:JWN) is set to release earnings results for its second quarter, after the closing bell on Tuesday, Aug. 27.

Analysts expect the Seattle-based company to report quarterly earnings at 72 cents per share, down from 84 cents per share in the year-ago period. Nordstrom projects to report quarterly revenue of $3.9 billion for the quarter, according to data from Benzinga Pro.

On Aug. 21, Nordstrom's board approved a quarterly dividend of 19 cents per share payable on Sept. 18, to shareholders of record at the close of business on Sept. 3.

With the recent buzz around Nordstrom, some investors may be eyeing potential gains from the company's dividends too. As of now, Nordstrom offers an annual dividend yield of 3.50%. That's a quarterly dividend amount of 19 cents per share (76 cents 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 $171,558 or around 7,895 shares. For a more modest $100 per month or $1,200 per year, you would need $34,312 or around 1,579 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.76 in this case). So, $6,000 / $0.76 = 7,895 ($500 per month), and $1,200 / $0.76 = 1,579 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: You can compute the dividend yield 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.

JWN Price Action: Shares of Nordstrom gained 2.7% to close at $21.73 on Friday.

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