McCormick & Company, Incorporated (NYSE:MKC) will release earnings results for its third quarter, before the opening bell on Tuesday, Oct. 1.

Analysts expect the Hunt Valley, Maryland-based company to report quarterly earnings at 67 cents per share, up from 65 cents per share in the year-ago period. McCormick is projected to post quarterly revenue of $1.67 billion, according to Benzinga Pro.

With the recent buzz around McCormick, some investors may be eyeing potential gains from the company's dividends. As of now, McCormick has a dividend yield of 2.02%. That's a quarterly dividend of 42 cents a share ($1.68 a year).

To earn $500 monthly from McCormick, start with the yearly target of $6,000 ($500 x 12 months).

Next, we take this amount and divide it by McCormick's $1.68 dividend: $6,000 / $1.68 = 3,571 shares

So, an investor would need to own approximately $297,250 worth of McCormick, or 3,571 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 / $1.68 = 714 shares, or $59,433 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.

Price Action: Shares of McCormick edged lower by 0.01% to close at $83.24 on Friday.

On Sept. 17, Bank of America Securities analyst Peter Galbo maintained McCormick with a Buy rating and raised the price target from $86 to $95.

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