Shares of Westpac Banking Corp (ASX: WBC) today soared a blistering 3.6%, as the broader S&P/ASX 200 (index: ^AXJO) (ASX: XJO) staged its first meaningful rebound following a horror month in August.
Source: Google Finance
In fact, since the beginning of the week, Westpac shares have rallied a whopping 5.7% – rewarding the gumption of astute income investors.
Is this your last chance to get Westpac's huge dividend yield?
Unfortunately, a rising share price makes a dividend yield smaller. Indeed, earlier this week an investor could've bought Westpac shares when they were trading on a trailing dividend yield of 6.2% – fully franked no less!
However, the yield is evaporating quickly, and at its current price over $31.50, Westpac yields just north of 5.7%. It's still an exceptional return compared to term deposits and property yields, but investors appear to be getting less for their money with every passing day.
Is it time to buy Westpac?
Personally, I believe Westpac shares are currently too expensive for long-term value investors to purchase. Sure, shares may rally in the immediate future, but with over 2,000 companies listed on the ASX, there are many other cheaper alternatives to consider buying first.
