High Yield Stock For Possible Dividend Increases

Summer can be a slow period for stock traders and investors. One possible catalyst for a stock price increase is a dividend increase announcement. Companies with a regular pattern of annual dividend increases tend to make the increase during the same period each year. Here is a list of high yield stocks that normally increase their dividend rate in July or August. If a stock does increase its dividend rate, the share price may follow higher. Here are four stocks currently paying an attractive dividend yield, which may increase the distribution in the next 60 days. Delta Natural Gas Company Inc. (Nasdaq: DGAS) is a small cap, natural gas transport company with a history of dividend increases. The company's fiscal year ends at the end of June, and the dividend is usually increased along with the new fiscal year. The 2011 dividend rate of 34 cents per quarter was a 1.5 cent increase over the previous year. The current dividend yield is 4.2 percent. Maxim Integrated Products Inc. (Nasdaq: MXIM) is a manufacturer of integrated, analog circuits. The stock has a market cap of $7.6 billion. The company has a history of increasing the dividend for the August quarterly payment. Last year the dividend increased by a penny to the current 21 cents per quarter. The stock yield at the current share price is 3.2 percent. National Retail Properties Inc. (NYSE: NNN) is a real estate investment trust  - REIT - with a $2.1 billion market cap. The company historically adjusts the quarterly dividend at the end of July. In 2010, the quarterly distribution increased by one-half cent to the current 38 cents per share. The increase was the first dividend boost in several years. NNN currently yields 6.0 percent. MGE Energy Inc. (Nasdaq: MGEE) is a public utility company headquartered in Madison, WI. The company has a current market cap of $950 million and the dividend yield is 3.6 percent. Dividends have been steadily increasing each year, and the new dividend rate is declared in August. The company paid a double dividend in February of 2011, so it appears MGE management likes to reward shareholders when the company prospers. These companies, outside of MXIM, are small cap stocks with decent histories of rewarding investors through dividend payments. Some research into the share price may allow you to pick some good entry prices for the stock, multiplying the results of a dividend increase announcement. The summer stock market has been more volatile than the historic "Sell in May and Go Away" saying indicates. Buying on dips seems to be back in vogue to profit from a quick price rebound.... Read more