In what has become a horror run for shareholders of Woolworths Limited (ASX: WOW), the supermarket behemoth has today slipped 1.5% or 43 cents to $28.10 – a price not seen since November 2012. That compares to a 0.7% decline for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) benchmark.
Source: Google Finance (click to zoom)
Although the company hasn't released any news today which would specifically explain the fall, it's possible that investors are selling out in the hope of limiting their losses. Indeed, the stock has come under selling pressure due to concerns regarding its ability to continue competing with the likes of Aldi, Costco and Coles, owned by Wesfarmers Ltd (ASX: WES), while its struggling Masters Home Improvement chain is also a worry for the group's future earnings capability.
Given the uncertain outlook for the Australian economy, it's possible the shares could continue to fall over the coming days and even weeks or months. However, that's not to say now isn't a great time to buy.
It's very rare that investors are presented with an opportunity to buy one of Australia's greatest and most reliable companies at such an attractive price – especially when the broader market is trading near a seven-year high.
At its current price of $28.10, the stock could not only generate fantastic capital gains over the coming years, it also offers a 4.9% fully franked dividend yield (7.1% grossed up). In today's low interest rate environment, that's a compelling prospect which long-term Foolish (capita 'F') investors should seriously consider.
An even better bet than Woolworths Limited
