With an eye toward creating a high yield portfolio with international stocks, closed-end funds and preferred shares, Covestor model manager Vivian Lewis has developed the International Yield model.
Within this model, one of her top positions is Cenovus Energy Inc (NYSE:CVE). CVE is a Canadian oil and gas drilling and exploration company that was formerly known as part of EnCana. In January 2010, Encana split off the majority of its assets into Cenovus. They have a high price to earnings ratio and the position has shown inconsistent pricing since January but its price has risen more than 13% since then.
Another top holding in the International Yield model is Banco Latinoamericano de Comercio Exterior S A (NYSE:BLX). BLX is a company that provides Latin American banks and companies with trade financing. Their price to earnings ratio is low, especially when compared to competitors. They showed improved stockholder equity in 2009 but their cash flows have, understandably, taken a dive. Of course, in this model we are looking for a high yield which is not necessarily tied to criteria like PE ratios and cash flows. This position has risen significantly since its February 2009 lows.
