Thomson’s new focus will pay off

Article Excerpt

Thomson Reuters’ shares have soared, rising about 70% since the company began divesting itself of its financial information business (Refinitiv). Thomson is putting the proceeds of the Refinitiv sale into its remaining legal, tax and other specialized information businesses. Demand for their products is strong as corporations adapt to the new tax codes and regulations resulting from COVID-19. The company is also using that cash to reward investors with higher dividends and share buybacks. THOMSON REUTERS CORP. $114 is a buy. The company (Toronto symbol TRI; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 495.7 million; Market cap: $56.5 billion; Price-to-sales ratio: 9.3; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service. The Thomson family holds 66% of the outstanding shares. Information products sold to law firms (mainly under the Westlaw and Practical Law brands) represent Thomson’s biggest…