Shares of Westpac Banking Corp (ASX: WBC) have been on a fantastic run in 2015 climbing a huge 20%, versus a 9.5% jump in the S&P/ASX200 (ASX: XJO) (Index: ^AXJO). This as investors fall over themselves to grab a slice of Australia's 'low-risk' dividend stocks.
However, Westpac's share price is in a very precarious position, in my opinion.
But 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 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 3.9% 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 its slowing growth profile. However the reduced outlook now appears to be priced into its shares. Today it's offering decent growth and a 4.8% fully franked dividend yield at a relatively attractive price.
A better buy than Woolworths and Coca-Cola Amatil…
At today's prices, I believe both Woolworths and Coca-Cola Amatil are offering a much more compelling risk-reward opportunity than Westpac Bank and its peers. With strong competitive advantages and generous dividend yields on offer, if you're looking to invest for the long-term (five years or more), now could be a great time to take a second look at both stocks.
