Apogee Enterprises, Inc. (APOG) is set to report third-quarter earnings before the market opens on Jan. 7, 2026, and if you're thinking about the stock, there's another angle worth considering: the dividend income.

Wall Street analysts are expecting earnings of $1.01 per share for the quarter, which would represent a decline from the $1.19 per share the company posted in the same period last year. Revenue, however, should tick upward to $355.29 million from $341.34 million a year earlier.

The stock got a boost of confidence recently when DA Davidson analyst Brent Thielman upgraded Apogee Enterprises from Neutral to Buy on Nov. 17, setting a $47 price target. That represents meaningful upside from where shares closed Friday at $37.96, up 0.9%.

But here's where the dividend conversation gets interesting. Apogee currently pays out a quarterly dividend of 26 cents per share, which translates to $1.04 annually and a 2.74% yield. Not spectacular in today's market, but steady.

The Math Behind Monthly Dividend Income

If you're aiming to collect $500 every month purely from Apogee dividends, you'd need to generate $6,000 annually. Here's the calculation: divide your target annual income ($6,000) by the annual dividend per share ($1.04). That gives you 5,769 shares, which at the current stock price would cost approximately $218,991.

Want something more achievable? To pocket $100 monthly (or $1,200 yearly), you'd need about 1,154 shares, requiring an investment of roughly $43,806.

Understanding Dividend Yield Fluctuations

Keep in mind that dividend yields aren't static. They shift as both the stock price and dividend payments change over time. The yield is calculated by dividing the annual dividend by the current stock price.

Here's a quick example: imagine a stock pays $2 annually in dividends and trades at $50. That's a 4% yield ($2 divided by $50). But if the stock climbs to $60, the yield drops to 3.33% because you're dividing that same $2 by a higher price. Flip the scenario and let the stock fall to $40, and suddenly you're looking at a 5% yield.

The same principle applies when companies adjust their dividend payments. Raise the dividend while the stock price holds steady, and the yield increases. Cut the dividend, and the yield falls accordingly.

With earnings right around the corner and an analyst upgrade providing some optimism, Apogee Enterprises presents an interesting case study for investors balancing growth potential with income generation.