With an 8% payout, here’s one cheap stock to boost my passive income!

 With an 8% payout, here's one cheap stock to boost my passive income!

One of my goals is to increase passive income. With that in mind, shares in Glencore (LSE: GLEN ) look like they could be perfect for me. Let's take a closer look at the investment caseGlencore is one of the world's largest commodity traders. It operates in the markets of metals, minerals an energy products. Some of the commodities it produces include coal, copper, zinc and iron ore.

So what's going on with Glencore shares right now? Well, as I write, they are trading at 459p, which is close to the same price as this time last year, at 460p. More tellingly, the shares have fallen 20% since trading at 578p in January.

I believe this is due to the gloomy macroeconomic outlook that has pushed many stocks down. Despite this, I believe there could be a good opportunity to buy cheap Glencore shares that could increase my passive income.

The case of the bull and the bear

I am bullish on Glencore's market position and the outlook for commodities in general. Glencore has a global presence and is established in the market as one of the world's leading players. Forecasts indicate that the demand for commodities will only grow in the coming years. Add to that that demand should outstrip supply, and Glencore could translate that into future profits and returns for investors

Also, with all passive income stocks, I want to know that I can count on consistent payouts. One of the measures is the company's balance sheet. Glencore has a rock solid balance sheet in my opinion. It has minimal debt and plenty of cash reserves, which are useful when the economic picture is uncertain, as it is now. This can ensure that dividends are still paid and growth plans can also be implemented.

Finally, Glencore shares have an attractive dividend yield of 8% right now. However, I understand that dividends are never guaranteed. Furthermore, due to the market's decline, the stock looks dirt cheap at a price-to-earnings ratio of 8.

As for the bearish case, commodity stocks like Glencore can struggle when the economy is struggling, as it is now. Rising inflation around the world and rising interest rates are holding back the economy. Demand for metals may drop during this period, which can hurt performance and returns.

In addition to the cyclical nature of Glencore's business, it is always worth noting that mining operations can be affected by problems. For example, production problems or accidents during mining can affect production, as well as performance and investor sentiment. This is a persistent risk that I will keep an eye on.

Actions ideal for passive income

After reviewing the pros and cons, I like the look of Glencore shares. I believe it will strengthen my property. I would be willing to buy some shares when I have the spare cash to do so.Glencore has an attractive yield and trades at a discount in my view. In addition, it has an enviable market position thanks to its global operations as well as a healthy balance sheet. Finally, I see that they are always trying to grow the business through acquisitions. This can help increase future profits and returns for investors.

Please take a moment to read this first before you decide. Because my colleague Mark Rogers - Chief Investment Officer of The Motley Fool UK - released this special report. It's called "5 Stocks to Try to Build Wealth After 50".

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Of course, the decade ahead looks dangerous. What with inflation recently hitting 40-year highs, a "cost of living crisis" and the threat of a new Cold War, knowing where to invest has never been more difficult.And yet, despite the UK stock market recently hitting a new all-time high, Mark and his team think many stocks are still trading at a significant discount, offering savvy investors plenty of potential opportunities to strike.This is why now could be the perfect time to secure this valuable investment research.Mark's "stupid" analysts searched the markets low and high.This special report reveals 5 of his favorite long-term "buys". Please don't make any big decisions until you see them

Are you looking for a reliable and affordable action that can exceed your passive income? Look no further! We've uncovered a hidden gem with an impressive 8% payout that has the potential to fill your investment portfolio. In this article, we explore this exciting stock opportunity and discuss how it can become a game changer for your financial goals.

Understanding the power of passive income

Passive income is the holy grail of financial independence. It's money you earn without actively working for it, allowing you to enjoy the fruits of your investment while maintaining the freedom to pursue other interests. One great way to do this is through dividend paying stocks.

Introducing cheap stocks with 8% payout

Imagine investing in a stock that not only has the potential for solid capital appreciation, but also rewards you with a generous dividend payout. This stock is not only affordable but has a long history of providing consistent returns to its investors. With an 8% payout, it stands out as a compelling choice for those looking to increase their passive income.

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Diversifying your investment portfolio is a fundamental strategy for minimizing risk while maximizing returns. With an impressive 8% payout, this cheap stock can be a valuable addition to your diversified portfolio. It can provide stability and regular income, making it an excellent choice for both seasoned investors and those new to the world of equity investing.

Future potential

While past performance does not guarantee future results, analyzing a company's financials and growth prospects is essential. Look for indicators of earnings stability and growth, as well as the company's ability to sustain its dividend payout over time. It is also important that you stay informed about industry trends and the overall economic outlook.

If you're looking to boost your passive income with cheap stocks that offer an impressive 8% payout, this hidden gem might be perfect for you. By strategically adding this stock to your investment portfolio, you can pave the way for a more financially secure future. Be sure to do thorough research and consult with financial professionals before making any investment decision. With the power of keywords like “cheap stocks”, “8% payout” and “passive income” you are well on your way to attracting the right audience for this fantastic investment opportunity. Start your journey to financial freedom today!