Is it time to buy Westpac Banking Corp?

Down 8% in the past month alone, Westpac Banking Corp (ASX:WBC) might still have further to fall.

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If you truly are a long-term investor, then seeing share prices fall will get you excited because they can provide excellent buying opportunities.

No doubt the recent sell-off in bank stocks will have some readers wondering whether or not now is a good time to buy in.

Of the big four banks, Westpac Banking Corp (ASX: WBC) has fallen the hardest, down 8.22% over the past month, followed by Australia and New Zealand Banking Group (ASX: ANZ), which is down 7.01%.

So should you be licking your lips at the idea of picking up one of these banks at seemingly discounted prices?

I don't think so.

Shares in either bank still aren't cheap and there is still some way to go before I'd be willing to invest in any of the big four. Westpac especially.

What about the dividend?

I'll admit, Westpac's grossed-up dividend yield of 8.6% sure looks tempting in the current low interest rate environment. However if the latest sell-off in shares has taught us anything, it's that blindly chasing dividend yields, can be fraught with risk.

Its vital to pay a good price for any stock you want to buy, by researching the company and applying some form of price to its future prospects. At today's levels I believe both Westpac and ANZ are best left on the watchlist.

Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.  

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