3 FTSE 100 stocks I think can increase their dividends now

first_img Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. 5 Stocks For Trying To Build Wealth After 50 Enter Your Email Address I like to divide my investment portfolio between FTSE 100 growth and income stocks. My growth stocks have shown healthy growth over the past year, thanks to the stock market rally. But my income stocks have disappointed. This is partly because companies cut back on dividends during the pandemic. And partly because the dividend amounts are less than they were pre-pandemic. But I am optimistic that this can change now for at least oil and banking stocks. Both sectors are closely linked to the economy. And the economy is showing clear signs of picking up. The UK economy showed monthly growth of 2.3% in April as the second stage of lockdown easing kicked in. This is the sharpest growth in eight months. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Oil biggies can make gainsIncreasing demand in the economy has been evident in rising oil prices as well. We have seen this since the start of 2021. But it became glaringly obvious this past week as oil prices reached a two-year high. FTSE 100 oil companies BP and Royal Dutch Shell will continue to be gainers from this trend. Both of them saw improved recent results because of higher prices. Additionally, as the pandemic recedes further and travel can ease more, oil demand will increase further. Whichever way I look at it, oil companies stand to gain. I think this could prompt them to increase their dividends too, which were cut back last year. I hold both stocks because of the generous dividends I earned in the past and their long-term dividend history. And now, I am hopeful that they will increase again, unless the pandemic either forces travel restrictions again or extends existing restrictions for a longer time. Banks can increase dividendsNext, I am hopeful that at some point this year, banks will be in a position to increase their dividends. So far, their dividends have been subject to stringent regulation. Last year, as the stock market crash happened, the Bank of England’s (BoE) Prudential Regulation Authority (PRA) asked them to withhold dividends. By the end of the year, as the vaccines were developed and the overall environment started to look better, they were allowed to resume dividend payments. However, these have been subject to significant constraints based on their loans profile. As a result, so far their dividend yields are quite low. Not even one FTSE 100 bank has a yield higher than 2%.But this too, can change. The PRA has said the present constraints are temporary. With sure signs of a pick up in the economy, the BoE’s own bullish estimates for economic growth in 2021, and improved results across the sector, I think banks will be free to pay higher dividends sooner rather than later. I particularly like Lloyds Bank from a passive income perspective. It had the highest dividend yield pre-pandemic across banks. Moreover, as a UK-centric bank, I think it is best placed to gain from the economic recovery. On the flip-side, it could suffer if the recovery falters or if loan repayments become weak. But I think that risk is small. I would consider it from a long-term perspective. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. 3 FTSE 100 stocks I think can increase their dividends now Manika Premsingh owns shares of BP and Royal Dutch Shell B. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.center_img Our 6 ‘Best Buys Now’ Shares See all posts by Manika Premsingh I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Click here to claim your free copy of this special investing report now! Manika Premsingh | Saturday, 12th June, 2021 Simply click below to discover how you can take advantage of this.last_img read more