Designer Brands Inc. (NYSE:DBI) will release earnings results for the second quarter before the opening bell on Tuesday, Sept. 9.

With the recent buzz around the Columbus, Ohio-based company, some investors may be eyeing potential dividend gains. Designer Brands offers an annual dividend yield of 4.23% — 5 cents per share quarterly and 20 cents yearly.

To earn $500 monthly from Designer Brands, start with the yearly target of $6,000 ($500 x 12 months). Next, take this amount and divide it by Designer Brands' $0.20 dividend: $6,000 / $0.20 = 30,000 shares.

So, an investor would need to own approximately $141,900 worth of Designer Brands, or 30,000 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 / $0.20 = 6,000 shares, or $28,380 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.

DBI Price Action: Shares of Designer Brands rose by 7.3% to close at $4.73 on Friday.

Analysts expect Designer Brands to report quarterly earnings at 22 cents per share. That’s down from 29 cents per share in the year-ago period. Designer Brands projects to report quarterly revenue at $737.85 million. It earned $771.9 million last year, according to data from Benzinga Pro.

On June 10, Designer Brands reported worse-than-expected first-quarter financial results and withdrew its FY25 guidance due to macroeconomic uncertainty.

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