Verizon Communications Inc ( VZ ). will release earnings results for its third quarter, before the opening bell on Tuesday, Oct. 22,

Analysts expect the New York-based company to report quarterly earnings at $1.18 per share. That’s up from $1.11 per share in the year-ago period. Verizon projects to report revenue of $33.43 billion for the recent quarter, compared to $30.48 billion a year earlier, according to data from Benzinga Pro.

United States Cellular Corporation ( USM ) recently agreed to sell part of its retained spectrum licenses to Verizon for $1 billion.

With the recent buzz around Verizon, some investors may be eyeing potential gains from the company's dividends too. As of now, Verizon offers an annual dividend yield of 6.16%. That’s a quarterly dividend of 67.75 cents per share ($2.71 a year).

To figure out how to earn $500 monthly from Verizon, we start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by Verizon $2.71 dividend: $6,000 / $2.71 = 2,214 shares

So, an investor would need to own approximately $97,394 worth of Verizon, or 2,214 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 / $2.71 = 443 shares, or $19,488 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.

VZ Price Action: Shares of Verizon gained by 0.3% to close at $43.99 on Friday.

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