Since Westpac Banking Corp (ASX: WBC) reported its lacklustre financial results earlier this month, its share price has plunged…
Down 12% in just 16 days, the perceived benefit of Westpac's final dividend of 93 cents per share has been all but wiped out by a near 300 cents per share fall in price.
Moreover, whilst I'd love to say the shares are now good value, I think it's far too early today that.
Westpac's own boss, Brian Hartzer, has said the outlook for the banking sector is anything but rosy.
Whilst he said he's positive on the economy's future outlook, Mr Hartzer acknowledged growth will be "uneven" across industries. He added that the banking sector will be characterised by "intense competition."
The problem for Westpac is that its shares are very expensive with investors appearing to have priced in exceptional future profit growth.
Unfortunately, investors now realise that mightn't eventuate.
The good news…
However, with official interest rates at record lows, if you're – like me – looking to take advantage of high-yielding dividend stocks, not all is lost.
In fact there are a select number of ASX-listed stocks which could appeal to both value and dividend investors alike.
Here are two stocks I'd buy before Westpac today.
- Coca-Cola Amatil Ltd (ASX: CCL) is Australia's distributor of Coca-Cola and Beam-branded products. It also has the right to distribute Coca-Cola products to five neighbouring countries, including New Zealand and Indonesia. With a fresh cash injection from its parent, The Coca-Cola Company, the risk-reward trade-off currently on offer from Coca-Cola Amatil shares appears worthwhile. Its 4.2% partially franked dividend is an added bonus to its compelling value.
- Woolworths Limited (ASX: WOW) shares have struggled in recent months as investors come to grips with the possibility of slowing growth. However, the reduced outlook appears to be well-and-truly priced into its shares. In fact, it's offering decent growth, relative safety and a 4.9% fully franked dividend yield at an attractive price.
A better buy than Woolworths…
At today's prices I believe both Woolworths and Coca-Cola Amatil offer a much more compelling risk-reward opportunity than Westpac Bank and its peers…
