MGIC Investment stock rises toward a 15-year high as dividend increase boosts yield above 2.7%

Shares of MGIC Investment Corp.
MTG,
+0.21%
rose 0.4% toward a 15-year high, after the mortgage insurance company raised its dividend by 15%. Shareholders of record on Aug. 10 will be paid, on Aug. 24, a quarterly dividend of 11.5 cents a share, which is up from a previous dividend of 10.0 cents a share. At the current stock price, the new annual dividend rate implies a dividend yield of 2.72%, which compares with the implied yield for the S&P 500
SPX,
-0.38%
of 1.51%. MGIC’s stock has rallied 30.0% year to date, while the S&P 500 has gained 18.8%.