Again in early September, I seen that FTSE 100 oil juggernaut BP‘s (LSE: BP) shares had slumped to a 52-week low. Sadly for those holding this dividend stock, it’s solely obtained worse since. A brand new nadir was set yesterday (30 October).

Nonetheless, there’s one other top-tier firm that’s lagging the market by some margin.

Oil price fall

BP’s woes actually kicked in round April of this 12 months. At this level, the oil price started to say no from simply over $90 a barrel. Regardless of a yo-yoing round within the months since, it now sits simply above $70.

Q3 numbers, launched on 29 October, confirmed simply how a lot this had harmed the underside line. Revenue of $2.27bn was considerably decrease than over the identical three-month interval in 2023 (albeit beating Metropolis expectations).

Whereas the corporate did its finest to lift spirits by initiating one other share buyback, it didn’t cease the share price rot.

Dividends in danger?

The issue is that the headwinds for BP preserve piling up. For instance, Chancellor Rachel Reeves has simply introduced that the windfall tax on these producing oil and fuel within the North Sea — aka the Vitality Earnings Levy — will rise from 35% to 38% on 1 November.

Until the oil price recovers quickly, I wouldn’t be shocked if buyers began to worry a couple of dividend minimize.

Alternatively, the shares proceed to look very low cost on a price-to-earnings (P/E) ratio of simply seven. The present yield of 6.2% may also be definitely worth the danger, particularly if new(ish) CEO Murray Auchincloss can information the corporate by this sticky patch, cut back debt and get its inexperienced power credentials again in focus. He actually has his work minimize out.

Having beforehand thought-about shopping for the inventory just a few weeks in the past, I’ve returned to feeling impartial about BP. I’ll preserve anticipating now.

Sizzling inventory no extra

B&M European Worth Retail SA (LSE: BME) has additionally had a fairly terrible 12 months. As I sort, the share price has tumbled 22% since this time final 12 months.

Such a poor run of type is in sharp distinction to 2023. Again then, customers turned to discounters like this in an try to make their cash stretch so far as attainable. Gross sales duly soared, as did the corporate’s worth.

However B&M has struggled to maintain this momentum going as inflation has fallen. Tellingly, analysts at UBS acknowledged in September that the agency’s costs have been now not as aggressive with supermarkets Tesco and Sainsbury as they as soon as have been.

Low cost revenue

Alternatively, B&M shares at present change arms on a P/E ratio of 10. Certain, that’s dearer than BP. However this smacks of evaluating apples with oranges. Relative to the market as a complete, it nonetheless seems very affordable. Certainly, me shopping for now may show a masterstroke in time if the corporate is ready to proceed increasing in France at a good clip.

At 3.7% based mostly on analyst estimates, the yield isn’t unhealthy both. It’s additionally greater than I’d get from a regular FTSE 100 tracker.

I feel I’ll wait to learn the subsequent set of numbers earlier than deciding whether or not I wish to carry this inventory into my portfolio.

Interim outcomes are due on 14 November.