HP Inc. (NYSE:HPQ) will release earnings results for the third quarter, after the closing bell on Wednesday, Aug. 27.

Analysts expect the Palo Alto, California-based company to report quarterly earnings at 75 cents per share, down from 83 cents per share in the year-ago period. HP projects to report quarterly revenue of $13.71 billion, compared to $13.52 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around HP, some investors may be eyeing potential gains from the company's dividends. As of now, HP offers an annual dividend yield of 4.29%, which is a semi-annual dividend amount of 29 cents per share ($1.16 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 $139,696 or around 5,172 shares. For a more modest $100 per month or $1,200 per year, you would need $27,928 or around 1,034 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.16 in this case). So, $6,000 / $1.16 = 5,172 ($500 per month), and $1,200 / $1.16 = 1,034 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.

HPQ Price Action: Shares of HP fell 1.8% to close at $27.01 on Tuesday.

On May 28, HP reported worse-than-expected second-quarter adjusted EPS results and issued third-quarter adjusted EPS guidance below estimates.

Read More:

• Jim Cramer: Apollo Is A ‘Cheap’ Stock, Ouster Is ‘Very Expensive’

Image: Shutterstock