Thomson Reuters much more than a stock ticker

Global infotech giant based in Canada

When Roy Thomson founded his first newspaper in 1934, no one could have imagined that it was the beginning of a global empire.

The Timmins Daily Press was a small community newspaper serving an isolated mining town in northern Ontario. Few people outside the area were even aware of its existence but Thomson (who later became Baron Thomson of Fleet) used it as his first building block in creating a print empire that at its peak owned more than 200 papers in Canada, the U.S., and Great Britain. They included such heavyweights as The Times of London, the Scotsman, and the Sunday Times.

Many years prior to this, in 1851, Paul Julius Reuter reached a deal with the London Stock Exchange to provide share prices from European exchanges. In return, he received permission to supply London prices to European exchanges, and Reuters became a key provider of financial information. Today it operates a global network that employs 2,600 journalists servicing 165 countries in 12 languages.

In 2008, the two companies merged into what is now a one of the world’s largest communications firms, Thomson Reuters Corporation (TSX: TRI).

International infotech scope, based in Canada

Despite its historic ties to this country, some people don’t think of TRI as a truly Canadian firm, perhaps because of Roy Thomson’s close ties to the U.K. and Reuters’ British origin. But Canadian it is. The company is headquartered in downtown Toronto, and its chairman is Roy Thomson’s grandson, David, who is now the third Baron Thomson of Fleet and is reported by Forbes to be worth US$10.9 billion.

All this is to suggest that anyone looking to invest their money here at home should consider shares in Thomson Reuters. It’s a steady performer that offers decent capital gains potential and a small but growing dividend. Here’s what you need to know.

Roy Thomson and Paul Reuter wouldn’t recognize the communications giant that is their legacy. The company owns The Globe and Mail through a holding company. But this represents only a small part of the business. Reuters still provides stock quotes as part of its broad news coverage, but that too represents a fraction of revenue.

TRI operates in over 100 countries. Its main focus is selling electronic information, technology, and software solutions to professionals, corporations, and governments, primarily through subscriptions, in such fields as legal, tax, compliance, and accounting. The company is actively integrating artificial intelligence (AI) into its products and services.

Share price revival

The share price was flat for about five years after the merged company started trading on the TSX in 2008 but has been moving steadily higher since. The shares managed a small gain in 2022, which was a dreadful year for the markets. In 2023, the stock was up 25.4% and added another 19.2% in 2024. To May 23 this year, TRI is up 16% and recently hit an all-time high of $273.59.

The company reported first-quarter results on May 1. Revenue was $1.9 billion (figures in U.S. dollars), up 1% over the same quarter in 2024 (6% organically). Organic revenue increased 9% for the company’s Big 3 segments (Legal Professionals, Corporates, and Tax and Accounting Professionals).

Adjusted earnings per share was $1.12 versus $1.11 per share in the prior-year period. Free cash flow was up 3% to $277 million. In February the company increased its annual dividend by 10% to US$2.38 a share (US$0.595 per quarter). It was the fourth consecutive year of 10% dividend growth. The stock yields 1.2% at the current price.

In January, the company acquired cPaperless, LLC (SafeSend) for approximately $600 million. SafeSend is a U.S. based cloud-native provider of technology for tax and accounting professionals. SafeSend automates the “last-mile” of the tax return, including assembly, review, taxpayer e-signature, and delivery.

The company expects revenue growth of 3%-3.5% in fiscal 2025, with organic growth of 7%-7.5%. Free cash flow is projected at about $1.9 billion. Thomson Reuters is not a high growth company but is a steady performing blue chip stock for conservative portfolios. The stock is not cheap, with a p/e of 40.63, but is down from its recent high.

Conservative investors looking to add TRI to their portfolios should consult with their advisers to ensure the stock aligns with they financial objectives and risk-tolerance level.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.

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Notes and Disclaimer

Content © 2025 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

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