Midstage natural gas industry player NiSource (NYSE:NI) will pay a second-quarter dividend of $0.25 per share, a 4.2% increase over the rate it paid last quarter of $0.24 per share, the company announced yesterday.

The board of directors said the quarterly dividend is payable on Aug. 20 to the holders of record at the close of business on July 31. NiSource has paid a dividend every quarter since 1987. Last year the board indicated its intention to raise the dividend 3% to 5% annually.

NiSource President and CEO Robert C. Skaggs Jr. said: "Supported by a nearly $30 billion long-term project inventory, our infrastructure-focused strategy also is anticipated to deliver annual earnings growth of 5% to 7% -- underpinned by our commitment to investment-grade credit ratings."

The regular dividend payment equates to a $1.00-per-share annual dividend yielding 3.4% based on the closing price of NiSource's stock on May 14.

NI Dividend Chart

NI Dividend data by YCharts. Chart does not reflect latest dividend increase.