Cheap UK stocks are a popular choice for many investors, especially when they come with a sizeable dividend yield to generate a passive income. After all, the lower the price, the more potential room for growth over the long term.

With that in mind, I’ve spotted three companies that meet this description. And with strong tailwinds in their respective industries, I’m quite tempted to add these UK stocks to my portfolio today. Let’s explore.

A top UK mining stock that doesn’t do any mining

The mining industry is hardly a simple area to operate in. Apart from needing all the engineering and ecological expertise, finding, developing, and extracting resources from the ground is fraught with uncertainty. That’s what makes Anglo Pacific (LSE:APF) so interesting to me.

The firm doesn’t engage in any of the typical mining activities. It instead simply provides funding for other leading businesses, like Rio Tinto, to establish a mining site. In exchange for this financial support, they receive a portion of extracted materials as a royalty payment.

That still means the company is exposed to the risk of fluctuating commodity prices. However, it doesn’t have to contend with the extensive risks associated with exploration.

Today this UK stock trades at 131p and offers a chunky 6.6% dividend yield. And after recently adding cobalt to its mineral portfolio, the firm looks primed to continue delivering a large passive income thanks to surging demand for electric vehicle batteries.

Generating a passive income with wind

With global warming becoming an increasing problem, the shift towards renewable energy sources has been accelerated. And with the technology becoming cheaper and more reliable, Greencoat UK Wind (LSE:UKW) is enjoying some favourable tailwinds.

The company owns both on- and offshore wind farms across the UK, generating revenue by selling green electricity. Electricity prices are limited by regulators meaning this stock has no pricing power. That obviously exposes its profit margins to the risk of being squeezed, as operating expenses are primarily fixed.

However, at today’s price of 136p, shareholders are enjoying a 5.25% dividend yield. And with inflation pushing utility prices up, the firm seems to be in a powerful position to reap greater profits in 2022.

Solving the e-commerce storage problem

After the pandemic forced many non-essential stores to close their doors, consumers turned to online shopping for their retail therapy. So, it’s not surprising that the level of investment in retailer e-commerce solutions has suddenly surged.

Unfortunately, that created a bit of a problem. There is only so much warehousing space in ideal locations available. As such, the rental cost per square foot is climbing quite rapidly. And while that’s horrible news for retailers, it’s music to the ears of Warehouse REIT (LSE:WHR).

The firm buys, refurbishes, and rents previously dilapidated warehouses to online businesses – returning the profits to shareholders through dividends. At today’s share price of 169p, the UK stock yields a 3.7% passive income for investors.

Of course, the commercial property sector is filled with competition that could drive up future property acquisition prices through bidding wars. Should management start overpaying for new locations, it could compromise the dividend stream in the future. But for now, Warehouse REIT seems to be ready to thrive in 2022 and beyond. At least, that’s what I think.

The post 3 UK passive income stocks to buy today under £2 appeared first on The Motley Fool UK.

More reading

• Is this £1.66 UK stock the key to building a passive income?
• Renewable energy stocks: which ones are worth a buy?
• 2 FTSE 250 dividend stocks I’d buy now

Zaven Boyrazian owns Anglo Pacific. The Motley Fool UK has recommended Anglo Pacific, Greencoat UK Wind, and Warehouse REIT. 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.