Altria Group, Inc. (NYSE:MO) shares closed slightly higher during Friday's session.

On May 16, the company's board declared a regular quarterly dividend of 98 cents per share, payable on July 10, to shareholders of record as of June 14.

On April 25, Altria Group reported a first-quarter FY24 sales decline of 2.5% year-over-year to $5.58 billion. It beat the analyst consensus estimate of $4.71 billion.

With the recent buzz around Altria Group, some investors may be eyeing potential gains from the company's dividends. Altria currently has a dividend yield of 8.39% — a quarterly dividend amount of 98 cents a share ($3.92 a year).

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

Next, we take this amount and divide it by Altria Group's $3.92 dividend: $6,000 / $3.92 = 1,531 shares

So, an investor would need to own approximately $71,498 worth of Altria Group, or 1,531 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 / $3.92 = 306 shares, or $14,290 to generate a monthly dividend income of $100.

Also Read: Jim Cramer Is 'Worried' About Palo Alto Networks, Calls Monday.com 'Really Good'

Note that dividend yield can change on a rolling basis. 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.

MO Price Action: Shares of Altria Group rose slightly by 0.02% to close at $46.70 on Friday.

Read More: How to Find Dividend Stocks: Scan, Analyze, and Capture with Benzinga Pro