Wells Fargo & Company (WFC) is set to report fourth-quarter earnings before the market opens on Wednesday, Jan. 14. While everyone loves a good earnings beat, some investors are more interested in the steady cash flow that comes from dividend payments. Let's break down what it would take to turn Wells Fargo shares into a reliable monthly income stream.

Analysts are projecting the bank will post earnings of $1.67 per share for the fourth quarter, a solid jump from the $1.43 per share reported in the same period last year. Revenue estimates come in at $21.66 billion, up from $20.38 billion a year ago.

The recent analyst activity suggests cautious optimism. On Jan. 7, TD Cowen analyst Steven Alexopoulos maintained a Hold rating on Wells Fargo but bumped up the price target from $93 to $102, reflecting some confidence in the bank's trajectory.

Now for the dividend math. Wells Fargo currently offers an annual dividend yield of 1.90%, paying out 45 cents per share each quarter, which adds up to $1.80 annually. Not spectacular, but dependable.

Here's how the income calculation works: To pocket $500 every month (or $6,000 annually) purely from Wells Fargo dividends, you'd need to invest approximately $316,502, which translates to roughly 3,333 shares at current prices. If you're thinking smaller, say $100 monthly ($1,200 yearly), you'd need about $63,338 invested, or around 667 shares.

The calculation is straightforward: Take your desired annual income and divide it by the annual dividend payment. So $6,000 divided by $1.80 equals 3,333 shares for $500 monthly. Similarly, $1,200 divided by $1.80 equals 667 shares for $100 monthly.

One important caveat: dividend yields aren't static. They fluctuate as both the stock price and dividend payments change over time.

Understanding yield mechanics: The dividend yield comes from dividing the annual dividend by the current stock price. Say a stock pays $2 annually and trades at $50—that's a 4% yield ($2 divided by $50). But if the stock rallies to $60, the yield drops to 3.33% ($2 divided by $60). Conversely, if the stock falls to $40, the yield climbs to 5% ($2 divided by $40).

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

Recent price action: Shares of Wells Fargo declined 1% on Monday, closing at $94.96.