The BP (LSE: BP) share price is known for its volatility, and the same can be said about the oil giant’s earnings record.

However, one of the positives over the years has been the company’s record of cash flow. Even in the depths of the fallout from 2010’s Gulf of Mexico oil spill disaster, BP’s cash flow kept the business going. The cash torrent also allowed the company to pay many millions in compensation to those affected.

A tempting dividend yield

Strong cash flow gives any business options. One choice is the ability to pay dividends to shareholders, and BP has been doing a good job with that for some considerable time. However, the business did take a short break from shareholder payments in the coronavirus crisis when the price of oil crashed.

With the share price now in the ballpark of 414p, the forward-looking dividend yield for 2025 is almost 6%.

That looks like a decent level of income and could sit well in an investor’s portfolio. However, a focus on dividend income works best if the portfolio is diversified over several shares. Such an approach can help to mitigate some of the single-company risks.

All shares carry risks, even if things look rosy in the underlying business at the time of buying. In BP’s case, one of the main uncertainties arises from the cyclicality of the sector.

The price of oil and gas rises and falls because of various factors, such as commodity demand, economic shocks, and supply constraints. Therefore, BP’s earnings tend to rise and fall too.

Another risk for the business is the ever-present possibility of another oil spill or some other disaster. The company’s operations are inherently dangerous, although the industry does much to embrace safe procedures and to manage the dangers.

BP’s ability to invest

There’s also the drive away from fossil fuels, which could in theory pull the rug from under BP’s operations in the end. But that process is likely to take many decades to unfold. In the meantime, the company has the ability to divert its cash flow and invest in other business areas — perhaps renewables or any other business line it chooses.

In that regard, BP and the other big oil companies have a lot in common with tobacco companies like British American Tobacco and Imperial Brands. They are also in an industry that many expect to expire eventually.

But cash flow is king. Oilers and tobacco companies have tons of it, which may help them to survive in the long run by adapting and reinvesting.

So, on balance and despite the uncertainties, I think it looks like a decent time to consider investing in BP shares now. One of the guiding principles investors often use when buying cyclical stocks is to buy low.

That can mean aiming to buy when the business is posting lower profits after they’ve cycled down. But another decent guide can be the share price itself.

For me, BP is a stock to consider when it’s weak. So I’d be inclined to carry out further and deeper research now with the hope of discovering few hidden nasties and a potential bargain-buy.