Thomson’s narrower focus pays off

Article Excerpt

Thomson continues to unlock value for our readers. Savings from the upcoming merger of its Refinitiv financial information business with the London Stock Exchange will spur its earnings and give it more cash for dividends. The company’s remaining tax and legal businesses should also benefit as businesses deal with COVID-19 tax changes. THOMSON REUTERS CORP. $104 is a buy. The company (Toronto symbol TRI; Conservative Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 497.0 million; Market cap: $51.7 billion; Dividend yield: 1.9%; Dividend Sustainability Rating: Highest; www.thomsonreuters.com) last raised its quarterly dividend with the March 2020 payment. Investors now receive $0.38 U.S. a share, up 5.6% from $0.36 U.S. The new annual rate of $1.52 U.S. yields a solid 1.9%. The company continues to focus on selling specialized information to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service. As part of that plan, in October 2018 it sold 55% of its Refinitiv financial information business to Blackstone Group LP…