Chesapeake Energy increases dividend by 17 percent

(Reuters) - Chesapeake Energy Corp (CHK.N), the second-largest natural gas producer in the United States, raised its common stock dividend 17 percent -- its first increase since June 2008.

Chief Executive Aubrey McClendon said the payout hike "reflects the Board's confidence in Chesapeake's steadily strengthening financial position."

Last week McClendon suffered a rebuke from shareholders as more than 40 percent of them rejected Chesapeake's executive payment plan and nearly a quarter voted to pull the CEO off the board of directors.

Oklahoma City-headquartered Chesapeake will pay out $0.0875, the company said on Monday.

(Reporting by Krishna N Das in Bangalore; Editing by Joyjeet Das)