December 13, 2018

Thomson Reuters (TRI)


 

Thomson Reuters (TRI) is a global conglomerate that has a hand in many different types of businesses all over the world.  They were recently ranked 39th on a list of best global brands, and were also labelled, “Canada’s Leading Corporate Brand,” in 2010 by the Interbrand Best Canadian Brands ranking.  The headquarters of this corporate behemoth is located in Times Square in New York and directs operations in 100 countries that employ over 55,000 people.  Thomson Reuters is incredibly well diversified and separates its operations into two main divisions: Professional and Markets.  Their official statements describe the company as a, “Leading source of intelligent information for businesses and professionals.”  They offer a huge range of services under that umbrella and operate in sectors that include financial, legal, tax, healthcare, science and media services.  They are also a notable force within the news industry.  Obviously Thomson Reuters (TRI) is a global juggernaut that is about as diversified as a company can be across many different industries and locations.

 

Thomson ReutersThe Thomson family from Ontario, Canada owns about 53% of Thomson Reuters and the company was founded by Roy Thomson in 1934.  It started as a small daily newspaper company, and expanded into the television market in 1957.  The next decade seen Thomson acquire larger and more well-established newspapers, and then take a huge leap when he bought out Britannia Airways in 1965.  Obviously at this stage the empire we see today was well underway.  In 1971 Thomson Reuters (TRI) got into the oil exploration in the North Sea.  When Roy (now Lord) Thomson passed away the company gradually moved away from media and into publishing when they bought Sweet and Maxwell in 1987.  Several more mergers brought the newly coined “Thomson Corporation” to purchase Reuters in 2008.  This was a massive merger that seen Thomson acquire a company that had been founded way back in 1851 and had been involved in stock market quotes, telegraph operation, radio pioneering, and a large media empire.  By 2009 the post-acquisition corporation had completed its metamorphosis into the giant we see today.  Thomson Reuters (TRI) is now only listed on the New York Stock Exchange and the Toronto Stock Exchange.

 

Thomson Reuters is the definition of a strong dividend play.  It is an extremely stable and mature company that is broadly diversified and has several durable competitive advantages over their competition.  Their name recognition and huge capitalization make the stock very attractive to investors who are looking for safe havens.  In fact, that is likely why investors have been buying the stock and keeping it at a 23 Price-to-Earnings ratio despite a week economy.  It has a great balance sheet and even offers some growth potential even though it is a mature company due to its broad business base.  Even with its relatively expensive evaluation Thomson Reuters (TRI) still offers a stable 3% dividend yield that has seen moderate growth over the past 5 years.

 

Thomson Reuters (TRI) Dividend Stock Graph:

TSE TRI

 

Thomson Reuters (TRI) Dividend Metrics

TickerNamePriceDividend YieldPayout RatioINDUSTRY_SUBGROUPDEBT_TO_MKT_CAPDividend Growth 5 yearsDividend Growth 1 years
TRIThomson Reuters Corp37.783.17106.62Multimedia0.244.05-1.60

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  1. […] equipment needed by the media industry and exports products all over the world.  Thomson Reuters (TRI) is a corporate giant that provides professional advice, software and programming for a variety of […]

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