7 Dirt Cheap Stocks to Invest In Now

5. Vale S.A. (NYSE:VALE)

Forward Price-to-Earnings Ratio: 5.60

Number of Hedge Fund holders as of Q2: 45

Vale S.A. (NYSE:VALE) is a heavy mining company and one of the largest iron ore pellets and nickel producers. While headquartered in Brazil, it operates in more than 20 countries. It is the world’s leading iron and nickel producer, and other metals like manganese and copper are used in battery production.

Consequently, Vale S.A. (NYSE:VALE) is one of the companies well-positioned to benefit from the electric vehicle revolution, fuelling strong demand for nickel used in batteries and iron. The company benefits from the scale of its operations by the impressive results it always generates as demand for basic materials increases.

The company delivered better-than-expected second-quarter results, with net profit soaring to record highs of $2.77 billion, nearly triple what it generated last year in the same quarter. The fact that Q2 net profit was 65% higher than in the first quarter underscores the underlying growth as the company benefits from high commodity prices. Revenues were up 3% to $9.9 billion as iron shipments soared 7%

Vale S.A. (NYSE:VALE) remains in a solid financial position, consistently generating a healthy amount of free cash flow from its operations. With dividend yields expected to surpass 7% in 2024 and 2025 from the current 5, there is no doubt that Vale is one of the dirt cheap stocks to invest in now for passive income—additionally, the stock trades at a discount with a price-to-earnings multiple of 5.60.

Hedge funds with investments in Vale S.A. (NYSE:VALE) were 34 in the quarter, with positions worth $1.15 billion. GQG Partners is the top shareholder in the company as of Q2 of 2024, with a position worth $334.61 million.