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6.2% dividend yields! A dirt-cheap UK share to buy right now

Electric vehicle (EV) sales are flying right now as fears over the environment and rising oil prices reign. In fact, demand for these low-carbon vehicles continues to beat expectations, providing a wealth of opportunity for UK share investors like me.

Latest sales figures from Tesla underline how strongly interest in these next-generation vehicles is growing.

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Revenues at the California company soared 81% year-on-year to $18.8bn, smashing broker expectations by around $1bn. Tesla said it expects to make 1.5m vehicles in 2022, up from around 930,000 last year.

A cheap UK share I’d buy

I think buying shares in brand leader Tesla is a great idea today. But I think another great option for UK share investors is to buy businesses that produce critical materials for EVs.

This is why I’d snap up cheap UK share Central Asia Metals (LSE: CAML) today. The business produces copper in Kazakhstan along with zinc and lead in North Macedonia. Copper is needed in huge quantities for wiring in electric vehicles and to create charging points that make them run. Lead and zinc meanwhile, are essential elements in battery production.

Researchers at Rystad Energy think copper consumption, for example, will rise 16% by the end of the decade to 25.5m tonnes. They also think that increasing EV sales and strong renewable energy, consumer electronics and construction markets will turbocharge demand for the red metal.

Rystad also believes that demand will grow ahead of supply expansion too, resulting in a 6m-tonne deficit. This is clearly a good omen for copper prices and, consequently for Central Asia Metals, its profits outlook.

Brilliant value for money

It’s also worth mentioning the excellent all-round value for money that Central Asia Metals provides at current prices of 275p per share. It trades on a forward price-to-earnings (P/E) ratio of 6.8 times, well inside bargain-basement territory of 10 times and below.

City analysts think the commodities producer’s earnings will rise 11% year-on-year in 2022. This is perhaps no surprise given the strength of EV sales and how strongly base metals prices are rising.

6.2% dividend yields!

I like Central Asia Metals in particular because of its bumper dividend yields. For 2022, this registers at a mighty 6.2%. It’s a reading that smashes the broader 3.5% average for UK shares today.

I think the long-term outlook for Central Asia Metals is exceptionally bright as demand for its base metals grows. But there’s possible dangers out there that could hit profits and shareholder returns hard.

Problems on the production front and setbacks with exploration could hit earnings forecasts hard. So could downturns in the global economy that could hit the prices it receives for its copper, lead and zinc.

However, I believe these risks are fairly well reflected in Central Asia Metals’ ultra-low valuation. This is a cheap UK share I think could be a good buy for my portfolio.

Read More: 6.2% dividend yields! A dirt-cheap UK share to buy right now

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