After the performance of Woolworths Limited (ASX: WOW) over the past 12 months it's not surprising that some shareholders have given up on the stock…
It's at exactly these times of despair however that some of the most attractive buying opportunities can present themselves. Indeed some savvy investors right now are considering if Woolworths is one such stock.
One of those savvy investors is Will Culbert, the senior investment officer at listed investment company (LIC) Bki Investment Co Ltd (ASX: BKI). BKI is a $915 million LIC that was originally formed in 2003 to take over the investment portfolio of Brickworks Limited (ASX: BKW). In the past decade the company has achieved a total shareholder return (including franking credits) of 11.2% per annum.
In the June BKI Quarterly Report, Culbert noted that the company had "been selectively adding to BKI's position in Woolworths of late" and highlighted the retailer is currently on a grossed-up dividend yield of around 7% and importantly that it's a sustainable dividend.
Culbert also drew investors' attention to a timely quote by investor Henry Singleton that:
"It's good to buy a large company with fine businesses when the price is beaten down over worry."
So, is now that time for Foolish investors?
Certainly Woolworths' stock has not been available at these price levels since mid-2012 and with the stock trading on a ratio of just over 15x forward earnings now would certainly appear a reasonable time for conservative investors to consider adding this blue-chip stock as a long-term portfolio holding.
