TD Synnex Corporation (SNX) is gearing up to report fourth-quarter earnings before the market opens on Thursday, Jan. 8, 2025. But beyond the quarterly numbers, the tech distributor's dividend yield is drawing attention from income-focused investors looking to generate steady monthly cash flow.

Wall Street analysts are expecting the company to post earnings of 94 cents per share, a modest tick up from 93 cents per share in the same quarter last year. Revenue estimates come in at $1.99 billion, compared to $1.96 billion in the year-ago period, according to consensus forecasts.

On Dec. 17, Morgan Stanley analyst Erik Woodring maintained TD Synnex with an Overweight rating while adjusting the price target downward from $181 to $177, suggesting he still sees upside despite some near-term caution.

Here's where the dividend math gets interesting. TD Synnex currently sports an annual dividend yield of 1.15%, paying out 44 cents per share every quarter, or $1.76 annually. That might not sound like much, but let's break down what it takes to turn that yield into meaningful monthly income.

Want $500 every month from TD Synnex dividends alone? You'd need to own approximately 3,409 shares, which would set you back about $522,054 at current prices. If you're thinking smaller, say $100 per month or $1,200 annually, you'd need around 682 shares costing roughly $104,441.

The calculation is straightforward: Take your desired annual income (either $6,000 or $1,200) and divide it by the annual dividend payment ($1.76). So $6,000 divided by $1.76 equals 3,409 shares for the $500 monthly target, while $1,200 divided by $1.76 gets you 682 shares for the $100 monthly goal.

Keep in mind that dividend yields aren't static. They fluctuate as both the stock price and dividend payments change over time.

Here's how the mechanics work: Dividend yield is calculated by dividing the annual dividend payment by the current stock price.

Consider a simple example. If a stock pays $2 annually in dividends and trades at $50, the yield is 4% ($2 divided by $50). But if that stock price climbs to $60, the yield drops to 3.33% ($2 divided by $60). On the flip side, if the price falls to $40, the yield jumps to 5% ($2 divided by $40).

The dividend payment itself can also shift the equation. When a company raises its dividend while the stock price holds steady, the yield increases. Cut the dividend, and the yield falls accordingly.

SNX Price Action: Shares of TD Synnex dipped 0.2% to close at $153.14 on Monday.