In her International Yield model, manager Vivian Lewis invests in equities and closed-end funds from outside the United States and has a target yield of 5 percent. This week she added Bank of Nova Scotia (NYSE: BNS) to her model. As of September 10th, 2010, BNS had a dividend yield of 3.85 percent. Their price to earnings ratio is higher than many competitors but their net income increased in 2009 to $3.5 billion, up from $3.1 billion the previous year. In 2009 they also reduced their total liabilities to $468.8 billion from $482.7 billion the previous year.
Lewis also added Westpac Banking Corp (NYSE: WBK) to her model. As of the date of this post, WBK has a 5.14 percent dividend yield and a higher price to earnings ratio than many competitors. The company’s net income fell by $1 billion in 2009 and their total liabilities increased by more than $150 billion.
Covestor manager John Ballard added a couple of new positions to his Mid-Cap Fundamentals model. In the model, Ballard looks for the best companies within under-capitalized sectors. He reviews balance sheets and looks for a high return on capital. One of the positions he added this week was Intuitive Surgical Inc (NASDAQ: ISRG), the company responsible for making the increasingly popular daVinci surgical robots. ISRG has a high price to earnings ratio compared to its peers, but their earnings per share increased from $5.12 in 2008 to $5.93 in 2009. Their net income also increased in 2009, as did their total liabilities.
Ballard also added Apple Inc (NASDAQ: AAPL). AAPL has so far managed to enjoy consistent market demand for its products—even during economic downturns. The company has a relatively high price to earnings ratio compared to its competitors. Their net income in 2009 was $5.7 billion, a comfortable increase from the $4.8 billion the previous year. Their earnings per share also increased from $5.36 in 2008 to $6.29 in 2009. The company’s total liabilities increased from $18.4 billion in 2008 to $25.8 billion in 2009, but their quarter two 2010 financials show them having been reduced to $21.6 billion.