Each month, I make a point to screen for stocks that are likely put more cash in your pocket. As Chief Investment Strategist of High-Yield Investing, it’s part of my job.

If you tuned in last month, you might recall that I mentioned Bank OZK (NYSE: OZK). For those who don’t recall, OZK is a growing regional bank with 250 locations throughout Arkansas, Florida, Georgia, Texas, and several other states. In that piece, I mentioned that the bank was trading at about half its book value, thanks to the Covid-19 selloff.

I also mentioned that bank’s ultra-conservative payout ratio, and its consistent rating as a top operator for a bank of its size. Well, I’m happy to report that those who followed my lead and bought are now up by about 20%.

Clearly, it pays to follow these ideas — because some of them pay off big time.

So if you’re new to this, here’s how it works… In each issue of my premium newsletter, I scan the market for potential dividend hikes. We’re looking for hikes likely to happen over the next four to six weeks. We also highlight noteworthy special distributions on the horizon. I give special attention to outsized double-digit increases and reliable dividend-payers that have been steadily growing payouts for a decade or more.

I flag these stocks first for my premium readers. Then, I share them with the public. If you’re looking for a potential portfolio addition to research further, I can’t think of a better place to start. So without further delay, here’s what I’ve found this month…

3 Upcoming Dividend Hikes

1. Camping World Holdings (NYSE: CWH) – Camping World is the nation’s premier vendor of travel trailers and other recreational vehicles, sold through 200 dealerships nationwide. Annual revenues are approaching the $5 billion mark.

Shareholders have grown accustomed to regular quarterly dividends of $0.08 per share. But management has been supplementing with additional special distributions of $0.073. And another such bonus is on the way.

A combined payment of $0.153 is scheduled for June 30 to shareholders of record on June 15. You would need to buy before the ex-dividend date of June 12 to qualify for the distribution.

The stock has been on a powerful upswing lately, soaring 30% earlier this month after posting stronger-than-expected first-quarter sales. What better place to social distance than camping in the great outdoors?

Management cited the falling number of RV trade-ins as a bullish sign indicating that new first-time customers are entering the market. On a conference call, executives revealed that the first weekend in May was the busiest in company history.

If consumers continue to shun crowded venues, this tailwind could be sustained.

2. Discover Financial (NYSE: DFS) – This credit-card issuer doesn’t just offer cash back to cardholders – but investors, too. Over the past two years, per-share quarterly distributions have marched from $0.35 to $0.40 to $0.44 – an increase of 26%.

Annual step-ups are typically announced in July.

Since the last increase a year ago, the firm’s loan book has increased by nearly $5 billion to reach $93 billion. Keep in mind, the average cardholder is paying an interest rate of 12.9%. Meanwhile, delinquency rates and charge-offs for bad loans have ticked higher in the Covid-19 era, but remain in check.

Despite headwinds, first-quarter lending profits rose by 4% to $2.4 billion. That figure doesn’t reflect another $700 million in credit card interchange fees pocketed during the period from growing card sales volume. The company has set aside more cash reserves for potential losses, but that’s largely due to a new accounting standard.

With management temporarily halting share repurchases, there should be enough cash for another dividend hike in the coming weeks.

3. Medtronic (NYSE: MDT) — Based in Dublin, this medical device maker sells a wide range of tools and instruments to healthcare facilities in 150 countries. And it has been a model of consistency, boasting 42 straight years of uninterrupted dividend hikes.

Will we get another? The odds are good, especially given the firm’s prodigious cash generation. Medtronic produced $2.1 billion in free cash flow last quarter (a 21% increase) and is on track to outpace last year’s haul of $5.9 billion. With meaningful margin expansion and solid top-line growth in emerging markets, management has just upped the firm’s 2020 earnings guidance.

There could be a small dent from the postponement of non-elective surgeries, but the latest outlook still calls for profits to hit $5.65 per share for the year. It wouldn’t surprise me to see the quarterly dividend bumped from $0.54 to $0.57 per share.

Action To Take

Remember, just because these stocks are likely to increase dividends doesn’t necessarily make them “buys.” These are merely ideas to get you started in the hunt for high yields.

I will say, however, that we did add OZK to our High-Yield Investing portfolio last month. It’s just one of the dozens of high-yielders we’re finding right now in this market, and my readers and I plan to take full advantage.

A lot of quality equities and funds that were driven down because of the coronavirus pandemic. Many will still be around after this is all over. In the meantime, they’re left with sky-high payouts while prices are down. That gives investors a once-in-a-generation opportunity to find rare deals — and high yields they wouldn’t normally find.

If want to know about my absolute favorite high-yield picks, then I invite you to check out my latest report right here.