Everyone who invests for passive income, probably drools for the possibility of wrestling offering 9% dividend profitability. And it is the analysts that have one company with FTSE 250 Down as delivery in the current budget year.

Is what stupid investors, or to be considered or be careful?

A terrible series of forms

There is a supply about this B&M European retail value SA (LSE: BME). And the initial impressions are not great.

This stone performance is mainly reduced to the company – and its owners – having absolutely terrible 2025. Everyone who receives shares when the markets were re -opened in January, would see that the value of their share would drop by about 35%. Buyers from 12 months ago will now look at 50%losses!

The falling price of shares increases dividend profitability, assuming that the company has the principle of distribution of some of the profits back to its owners. Hence this knockout number mentioned at the beginning.

Why did the price of the action fail?

B&M’s Tumble is not completely unjustified. Similarly to similar sales in Great Britain, it fell, which led to a warning from the seller. The CAP worth 2.3 billion GBP also dealt with higher wage costs and social security contributions. Former general director Alex Russo retired at the end of April, forcing to pass the leadership.

Another thing that is worth paying attention to is that there is a lot of debt in the balance sheet. It is not perfect that inflation is climbing again. Indeed, the latter may mean that interest rates remain where they are longer than expected.

Because consumers trust is still breakable and margins, we cannot blame the market for attracting a company. At least some owners will also ask if this huge dividend is threatened.

Not everything wrong

So are there any positives for the B&M investment case as things are? Actually, at least in my opinion.

The forecast price for profit (P/E) of seven in the current budget year is very low in relation to the rest of the British market. So it is potential In order for shares to be able to provide excellent capital profit over time (and this is a significant “if”) strategy of returning the modern general director TJEERDA Jegen brings fruit.

Interestingly, directors invest a lot of their own cash in shares in 2025. This does not mean that recovery is guaranteed. But he suggests that “in knowledge” they now see the company as underestimated.

Although miniature sellers are interested – betting on the stock price are even more falling – B&M is not as “popular” on this front as FTSE 100 Giants like a supermarket Sainsbury or owner of the prime minister Inn Whitbread or. I think every little one helps.

Counterattack

Earlier results are not a guide to the future when it comes to the stock exchange. But it should not be completely ignored. Interestingly, B&M supplies fell strongly in 2022, just to reflect strongly in 2023. Every buyer at a low level would double their money.

I don’t know if it will happen again. After all, it is an extremely competitive space. Despite this, I can understand the value and hunters of income attracting B&M, especially if dividends are still paid as during the previous inheritance.