Does it have a…
Big dividend yield? Check.
Powerful brand name? Check.
Blue-chip status? Check.
Telstra Corporation Ltd (ASX: TLS), National Australia Bank Ltd (ASX: NAB) and Wesfarmers Ltd (ASX: WES) have it all.
But are they a buy at today's prices? Let's have a quick look at each to determine which – if any – are worthy of your investment dollars.
Telstra
Since reporting a lacklustre set of annual results, Telstra's share price has followed the market sharply lower. In fact, it's down a gut-wrenching 11.5% in just one month. Telstra is arguably at an inflexion point in its transition from a leading infrastructure business to dynamic service provider and technology business. But while shares have fallen meaningfully lower in recent times, they're not yet a standout buy. I've said it before, but at $5 I'll start backing up the truck for Telstra shares.
NAB
NAB is Australia's leading business bank, but in recent times its senior management team has been fixated on the divestment of both the UK and USA businesses. While the process is ongoing, things appear to be tracking smoothly for NAB for the first time in many years. However, it's not out of the woods just yet, and I believe NAB shares are still quite pricey at today's levels.
Wesfarmers
Shares in the owner of Coles, Bunnings Warehouse and Kmart have also come under selling pressure in recent months, despite the company posting some impressive results. However, I've previously opined that Wesfarmers is expensive at over $35 a share (it's currently $39.25). Therefore, while it's very pleasing to see Coles growing profit margins in an increasingly competitive space, investors should demand a more compelling entry price into the stock, in my opinion.
Buy, Hold or Sell?
I think each of these three companies deserve a spot on Australian investors' watchlists. However, Telstra is the only one I might consider building a position in at today's prices. However, until it becomes a more compelling value investment, I doubt I'll buy in anytime soon because I know there are other cheaper dividend stocks on offer.
