Right now, shares of BHP Billiton Limited (ASX: BHP) are changing hands for $29.54, which reflects a startling 25.7% discount compared to their peak price at $39.79 in August last year.
The stock has experienced a sharp decline as a result of the tumbling iron ore price, combined with the freefalling oil price. Both commodities have come under pressure as a result of oversupply in the marketplace, combined with declining demand.
There is no doubting that some investors will see this as the perfect buying opportunity – especially with the stock tipped to yield 5.1% fully franked in FY15. Amazingly, that's an even better yield than what Woolworths Limited (ASX: WOW) or Telstra Corporation Ltd (ASX: TLS) are expected to pay!
However, investors who hold off for a little while longer could be rewarded with an even more attractive price. Many analysts are still bearish on commodities and expect iron ore and oil prices to fall even further, which would almost certainly drag BHP's shares lower. I've added the miner to my watchlist and will wait patiently for a better opportunity. Until then, there are plenty of other great dividend stocks to buy.
