Another month has come and gone. When the kids go back to school, you know we’re entering the final stretch of the year.

And in the stock market, that’s when things can get… interesting.

We don’t know exactly what the market will have in store for us. But we’ve got tabs on everything from the Federal Reserve to the war in Ukraine to gas prices and everything in between. (Did I also mention mid-term elections?)

In the meantime, it’s time for our monthly search for stocks that are set to put more cash in your pocket.

As Chief Strategist of High-Yield Investing, it’s part of my job. Each month, I flag these stocks first for my premium readers so that they can research them and get a head start. Then, I share them with the public. Ideally, I’m looking for hikes that could happen over the next four to six weeks. I also highlight noteworthy special distributions on the horizon.

We don’t do this just for fun. In a perfect scenario, we find great ideas for consideration in our premium portfolio… Companies posting outsized double-digit increases, and reliable dividend-payers that have been steadily growing payouts for a decade or more.

This month, I have three stocks I’d like to highlight. So if you’re looking for a potential addition to your income portfolio, consider looking at these names further…

2 Upcoming Dividend Hikes

1. Microsoft (Nasdaq: MSFT) – What can you say about Microsoft that hasn’t already been said? Sure, the company still rakes in more cash from its ubiquitous Windows architecture and Office subscription products in a month than most software companies could dream of in a year. But it’s the Azure cloud computing services division that is propelling the company to new heights, generating robust 40% growth over the past year.

Total revenues topped the $50 billion mark last quarter, driven by both acquisition and new product development. And thanks to sky-high gross profit margins near 70%, the software giant can return buckets of cash to stockholders — $12.4 billion over the past three months alone.

Microsoft likes to boost dividends in September, having approved 10% hikes in 2018, 2019, 2020, and 2021. A similar increase would lift the quarterly payout to $0.68 per share, or $2.72 annually.

2. Illinois Tool Works (NYSE: ITW) – Founded over a century ago, this industrial manufacturer sells auto parts, welding equipment, restaurant ovens and coolers, and other specialized products. It’s not a terribly exciting field. But as I’ve said before, boring can be great.

ITW generates $15 billion in annual revenue and maintains best-in-class margins across many of its core product lines. Despite trade disputes, raw materials price inflation, and other headwinds, earnings continue to reach new highs and are expected to climb by double-digits this year to reach as high as $9.40 per share.

The company is seeing strong momentum right now, with six of its seven segments delivering positive sales growth last quarter, led by 25% in the food equipment group. Operating margins remain stout. And with light capital spending requirements, the company is converting 90% of its net income into free cash flow.

Keep in mind, management likes to return half of its profits to stockholders. So quarterly dividends have been climbing just as fast, rising for 57 straight years. Well, make that 58 now. I was anticipating another hike soon, but ITW beat me to it.

Starting with the October payment, shareholders can expect to see quarterly dividends of $1.31 per share, a 7.4% increase.

Action To Take

We’ve had a pretty good run of finding solid ideas from this exercise, so it pays to follow along each month. Some of them end up paying off big time. So if you’re looking for a potential addition to your income portfolio, then I can’t think of a better place to start your research.

But remember, just because I highlight stocks that 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.

If you want to know about my absolute favorite high-yield picks, you need to check out my latest report…

You’ll learn about 12 ultra-generous dividend payers that put more money in your pocket. And the best part? They pay dividends monthly. Go here to learn more now.