There's a cheap S&P/ASX 200 Index (ASX: XJO) stock on my radar to tap for some market-beating passive income.
To be clear, when I say 'cheap' ASX 200 stock, I don't mean there's anything shoddy about the company itself. Or its outlook for ongoing, strong future dividend payments.
Instead, I mean that the company's share price has dropped 16.11% over the past six months, due to circumstances mostly outside of its control.
And I mean that it trades on a price-to-earnings (P/E) ratio of less than six times.
So, without further ado, the cheap ASX 200 stock in question is oil and gas company Woodside Energy Group Ltd (ASX: WDS).
What's been happening with Woodside shares?
Woodside shares have faced headwinds over the past six months, mostly from a big retrace in energy prices.
The Brent crude oil price, for example, is currently at US$84 per barrel. While that's up from the mid-December lows of US$73 per barrel, it's well down from the US$97 per barrel Brent crude oil was fetching at the end of September.
Still, I'm not overly concerned about the retrace in energy prices that have helped put Woodside on my cheap ASX 200 shares list. I'm pretty confident oil and gas prices will tick back up along with the global economic growth outlook once interest rates begin to come off the boil.
This should see Woodside continue to offer passive income investors an outsized yield.
And let's not forget that the energy giant's full-year 2023 production ramped up by 18.7% year on year to reach 187.2 million barrels of oil equivalent (MMboe).
With this mind, let's turn to that very handy $100 a month (or $1,200 a year) in passive income I'm after.
A cheap ASX 200 stock for regular passive income
Over the past 12 months, Woodside shares paid out a total of $3.40 in fully franked dividends. That included the all-time high final dividend of $2.154 per share.
Eligible shareholders will have seen that record passive income hit their bank accounts on 5 April. The interim dividend was paid on 28 September.
At yesterday's closing price of $31.87 a share, that sees this cheap ASX 200 stock trading at a juicy trailing yield of 10.66%.
Now Woodside's future dividend yields may be higher or lower, depending on a range of company-specific and macroeconomic factors.
But based on this trailing yield, and my expectations of a rebound in energy prices, I'd need to buy 353 shares of this cheap ASX 200 stock to earn a $100 monthly passive income.
And, of course, I'll be hoping the Woodside share price delivers some gains as well.
