With its 6.5% dividend yield, I’d consider buying this FTSE 100 stock

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first_img 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. Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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. With its 6.5% dividend yield, I’d consider buying this FTSE 100 stock  Manika Premsingh | Saturday, 15th February, 2020 | More on: GLEN “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Image source: Getty Images. Simply click below to discover how you can take advantage of this.center_img The FTSE 100 British-Swiss mining giant Glencore (LSE: GLEN) saw a 5% share price spike last week after it released a production update. It was the sharpest increase in more than a year and has been rising steadily since. It was up by 7.3% at the last close. Investors are clearly impressed with the miner, even though the update is a mixed bag.  Improved African operations Copper, which is a big revenue generator, saw a decline in production. But production for cobalt and coal rose. Cobalt production rose by 10%, which is good news for multiple reasons. First, its the result of improved African operations. Glencore temporarily closed down one of its mines in the Democratic Republic of Congo (DRC) last year. One reason was a sharp fall in cobalt price. But according to news reports it was also because of regulatory and taxation related issues. It’s also facing an investigation by the UK’s serious frauds office on the grounds of possible bribery in its DRC operations.  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…The promise of cobalt 63% of global cobalt production is concentrated in the DRC, which suggests the importance of the country for Glencore, which is the biggest producer of cobalt in the world today. Demand for cobalt, which it produces as a by-product of both copper and nickel production operations, is only expected to rise overtime.  It’s a component in electric vehicle (EV) batteries, which are the answer to the polluting fuel-run cars more widely used today. GLEN is rumoured to be in talks with US-based Tesla to supply cobalt for its EVs. Batteries even otherwise can use cobalt, as in the case of Samsung SDI, which recently signed a five-year deal with Glencore.      Cobalt could become particularly important for Glencore as the world economy transitions away from fossil fuels. As per the company’s last update, coal still accounted for over one-fourth or almost 28% of its revenues, even though it’s on its way out.  One for the income investor Glencore has been growing its revenues every year for the past few years and has been profitable too. But looking at the long-term share price of Glencore, its immediately obvious that it’s not one for the long-term growth investor. An active investor might find multiple opportunities for capital gains, but the share price hasn’t seen sustained increases more suitable for passive growth investment. Passive income generation, however, is another story. For the last three years GLEN has paid a dividend, and at present its yield is at 6.5%. This is over 2 percentage points higher than the average FTSE 100 yield. In its outlook released along with its half-year results, the management sounded confident. Ivan Glasenberg, the CEO,  talked among other things. about “attractive shareholder returns on offer”.  The GLEN share price is attractive even now, but if I want to be really sure of where it’s headed, I don’t have to wait for too long. Its results are due next week.   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. Our 6 ‘Best Buys Now’ Shares I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Manika Premsinghlast_img read more