Woolworths

By Jason Fittler

"If you are looking to add a high yielding, stable, blue chip, low risk stock to your portfolio make sure you take the time to look at Woolworths."


We all know Woolworths and have at some time spent money in one of their businesses.

They cover the core areas of retail spending; They have business in Food, Liquor, Petrol and General Merchandise. In fact, it is hard these days to not spend money with Woolworths.

While the market has dropped 45% since October 2007, Woolworths has fallen 29%, this makes Woolworths a long term portfolio stock and a great buy at the current price.

Woolworths has the diversification to ride out the bear market in style, at the current price you are receiving a 4% fully franked dividend, this is a gross return of 5.7%, this is expected to grow to 6.4% in 2010.

It is also trading 12% below our price target, making the stock great value.

I like Woolworths for a long term core portfolio stock, with the price now down at the current level it is time to either top up your holding or start buying into this stock.

If you are looking to add a high yielding, stable, blue chip, low risk stock to your portfolio make sure you take the time to look at Woolworths.

PS. Need more information on Woolworths? Give us a call at ABN AMRO Morgans Townsville, (07) 4771 4577 we are always ready to explain and help.