Updated April 2025
When you think of steady, dependable dividend payers, Thomson Reuters probably doesn’t jump to the top of the list—but maybe it should. This isn’t a flashy tech company or a high-yield utility. Instead, it sits firmly in the professional services space, supplying legal, tax, and news platforms to institutions around the world. It’s a giant in its lane, and it doesn’t have to shout to prove it.
The beauty of TRI for dividend investors is in its quiet strength. Its business model is built on recurring revenue from deeply entrenched services. That means less drama in turbulent markets, and more consistency when it comes to cash flow. For folks who care more about a dependable stream of income than market theatrics, TRI’s profile is well worth a closer look.
Recent Events
Wrapping up 2024, Thomson Reuters posted solid financials despite some near-term earnings pressure. Revenue climbed 5.2% year-over-year in the most recent quarter, driven by steady demand across its core business segments. That said, earnings took a bit of a hit, down over 13% YoY, mainly due to investments in AI integration and some one-time restructuring costs.
Even with the dip in earnings, TRI still delivered strong fundamentals. Operating margins hovered around 27%, and return on equity clocked in at 19%—a solid mark that points to effective capital use. On the balance sheet side, things look clean. The debt-to-equity ratio is comfortably low at 25.8%, and the company has around $2 billion in cash. With a current ratio right around 1.0, they’re maintaining liquidity without sitting on too much idle capital.
TRI also completed a minor stock split in mid-2023. It didn’t move the needle much for dividend investors, but it speaks to management’s attention to maintaining a shareholder-friendly structure.
Key Dividend Metrics
🪙 Forward Dividend Yield: 1.37%
📈 5-Year Average Yield: 1.55%
📆 Most Recent Dividend Date: March 10, 2025
📅 Ex-Dividend Date: February 20, 2025
📊 Payout Ratio: 44.54%
💵 Forward Annual Dividend: $2.38
📉 Beta (5Y): 0.33
📈 Dividend Growth Rate (5-Year Avg): Consistently in the high single digits
🧾 Levered Free Cash Flow (ttm): $1.02 billion
Dividend Overview
Let’s get one thing out of the way: TRI’s dividend yield isn’t going to impress income chasers. At just over 1.3%, it’s more of a steady trickle than a flood. But that steady trickle comes from one of the most durable business models in the information economy.
The company pays out less than half its earnings in dividends—about 45%—which leaves a nice cushion for reinvestment or navigating rough patches. Operating cash flow is strong, and the $2.38 annual payout per share is well covered. TRI’s ability to generate over $2.4 billion in operating cash flow over the past year gives investors solid reassurance that the dividend isn’t going anywhere.
It’s not just the consistency that stands out—it’s the discipline. Management isn’t stretching to appease income investors. They’re balancing shareholder returns with long-term growth needs, and they’ve built the kind of financial structure that supports both without compromise.
Dividend Growth and Safety
TRI’s dividend story has gotten more compelling over the past decade. As the company trimmed down non-core assets and honed in on its high-margin professional platforms, it also sharpened its capital allocation strategy. The dividend has been rising year after year, and while the increases aren’t headline-grabbing, they are reliable.
That reliability comes from the predictability of its revenue streams. Legal and tax professionals aren’t going to suddenly cancel their software subscriptions, even in a downturn. That gives TRI a defensive quality many income investors value. The low beta—just 0.33—backs that up. It doesn’t swing much with the broader market, which helps steady the portfolio when other holdings get jumpy.
Short interest is minimal, with only about 0.25% of shares sold short. That’s not a major stat on its own, but it’s another quiet signal that TRI isn’t drawing negative attention from traders. When you combine that with free cash flow north of a billion dollars, strong margins, and a clean balance sheet, it’s easy to feel confident about the sustainability of those dividends.
There is one thing to watch. The company is making a big push into artificial intelligence, which is smart long-term, but could weigh on margins in the short term. That’s a trade-off management seems willing to make, and with the kind of financial flexibility TRI has, it shouldn’t threaten the dividend.
In the end, it’s that balance of caution and consistency that makes Thomson Reuters such an appealing name for dividend-focused investors. Not for the size of the checks, but for the certainty with which they arrive.
Balance Sheet Analysis
Thomson Reuters has been tidying up its balance sheet like someone prepping for a surprise financial audit. Total assets dipped slightly year-over-year to $18.4 billion from $18.7 billion, a continuation of a slow-and-steady trim since 2021 when they stood north of $22 billion. But here’s where things get interesting—liabilities dropped even faster, down to $6.4 billion from over $7.6 billion last year and nearly $10 billion the year before that. That’s the kind of financial diet shareholders can get behind.
Equity tells a cleaner story too. Common stock equity climbed to nearly $11.9 billion, up from $10.95 billion in 2023, signaling growing value on the books. Net tangible assets and tangible book value have mostly vanished, which isn’t uncommon for service-heavy businesses, but it does make you do a double take. Working capital finally crawled back into positive territory, barely—$54 million to be exact—after spending the last couple of years deep in the red. And while total debt shrank again to just over $3 billion, net debt came down sharply too, suggesting strong cash reserves. All in all, TRI is tightening up, trimming the fat, and showing its balance sheet the same love it shows its dividend.
Cash Flow Statement
Thomson Reuters continues to show strong performance where it matters most—cash in, cash out, and what’s left over. For the trailing twelve months, operating cash flow reached $2.46 billion, up from $2.34 billion the year before. That’s a healthy sign of a business humming along, with more money being generated from core operations year after year. Free cash flow also stayed robust at $1.85 billion, showing the company still has plenty left after covering capital expenditures, which came in at $607 million.
On the investing side, TRI actually recorded a positive cash inflow of $680 million. That’s a sharp turnaround from its typical outflows in prior years, likely tied to asset sales or other non-operating moves. Financing activities saw significant outflows at $2.46 billion, reflecting continued debt repayments and share buybacks. While they didn’t issue new debt, they did reduce it by nearly half a billion, and also returned capital to shareholders with stock repurchases north of $600 million. The end result? A higher cash position of $1.97 billion, more than double what they had on hand just a few years ago. For dividend investors, that rising cash pile offers a comforting buffer.
Chart Analysis
Price Trend and Moving Averages
Looking at the past year, the price of TRI has steadily climbed from the $150 range to just shy of $175, with several distinct legs higher. The 50-day moving average (red line) has stayed mostly above the 200-day moving average (blue line), particularly in the last few months—a classic sign of bullish momentum. The two lines briefly converged in January but have since started to widen again as price rebounded. That recent upward crossover of the 50-day above the 200-day is often seen as a technical confirmation of strength.
The mountain-style price chart shows a series of higher lows and higher highs since early January. The February dip was sharp but short-lived, and the recovery since then has been accompanied by a steady push in both the price and the shorter-term moving average. It’s not an aggressive uptrend, but it’s consistent, and consistency has its own kind of strength.
Volume Behavior
Volume has remained relatively stable, with a few noticeable spikes—particularly during the May rally and again in early February. Those bursts of trading activity tend to line up with sharp price moves, suggesting institutional interest stepping in during key moments. Even with the recent climb in March, volume hasn’t gone wild, which could mean the move is being driven by steady accumulation rather than speculative swings.
There’s no panic selling visible here, just regular ebb and flow. That speaks to confidence among holders rather than skittishness.
RSI and Momentum
The Relative Strength Index (RSI) has remained mostly balanced, staying between 30 and 70 for most of the year. It flirted with overbought territory a few times—May, September, and again in February—but quickly pulled back without dramatic corrections. The latest reading shows RSI rising again toward the upper range, suggesting buyers are back in control after February’s cooldown.
This isn’t a stock being aggressively chased, but rather one being consistently supported. That kind of momentum is a quiet kind of powerful.
Analyst Ratings
📊 Analysts have kept a steady hand on Thomson Reuters (TRI), with the majority still leaning toward a “Hold” recommendation. The current consensus price target is around 💲180.15, offering a small upside from where the stock is currently trading.
🔼 On February 7, 2025, Goldman Sachs bumped its price target up from $168 to $188, sticking with its neutral stance. That same day, 🟢 Scotiabank raised its target slightly, from $187 to $188, while reaffirming a “Buy” outlook. Meanwhile, 🟡 Wells Fargo nudged its estimate from $165 to $177, also maintaining a “Hold.”
🧠 These moves come on the back of TRI’s consistent performance and its continued investment in AI and digital workflow tools. Analysts seem to appreciate the direction of the business, especially the company’s push to modernize its core legal and tax platforms. At the same time, the stock’s already solid run may be giving some firms pause when it comes to aggressively upgrading their rating.
📈 While the average target implies a bit of room for the stock to run, the cautious tone across the board suggests expectations are measured—TRI is doing the right things, but the bar is already set fairly high.
Earnings Report Summary
Solid Finish to the Year
Thomson Reuters closed out 2024 with a confident stride. Fourth-quarter revenue came in at $1.91 billion, up 5% from the previous year. What’s driving that growth? Recurring revenue, which now makes up 83% of the total, climbed a healthy 7%. That kind of consistency is the backbone of their business model. Earnings per share landed at $1.01 for the quarter, which came in ahead of expectations.
This kind of steady performance allowed the company to bump its quarterly dividend by 10%, pushing it to $0.595 per share. That marks the 31st straight year of increases—clearly not a streak they plan on breaking anytime soon. For long-term shareholders, it’s the kind of move that reinforces trust in leadership and their vision.
Investing in Growth
Thomson Reuters didn’t just sit on its hands last year. The company made moves—completing the sale of its remaining stake in the London Stock Exchange Group and picking up a few strategic additions like Materia and cPaperless, which strengthen its capabilities in the tax and accounting space. These aren’t headline-grabbing deals, but they reflect a clear direction: expanding their edge in professional software solutions.
Looking forward to 2025, they’re expecting revenue to grow around 3 to 3.5 percent. That may sound modest, but when you pair it with expectations for 7 to 7.5 percent organic growth and a target EBITDA margin of around 39%, it shows confidence in their core business. Much of this optimism ties back to their push into AI, where they spent over $200 million last year—and plan to do the same this year.
Technology at the Core
The big picture here is about transformation. Thomson Reuters is investing in AI and digital innovation not just to keep up with the times, but to lead in sectors like legal and tax services. CEO Steve Hasker made it clear they’re leaning into tech to help professionals make smarter, faster decisions. That’s not just buzzwords; it’s a realignment of how the business delivers value.
All in, the most recent earnings report feels like a company with its priorities straight—growing steadily, rewarding shareholders, and planting seeds for future growth without losing focus on what they already do well.
Management Team
At the top of Thomson Reuters is Steve Hasker, who has served as President and CEO since 2020. Before joining the company, he led CAA Global and worked as a senior adviser with a major private equity firm. His experience running large-scale, global operations shows in how he’s approached evolving the business toward a more digital, customer-centric model.
On the financial side, Michael Eastwood has been with the company for over two decades and currently serves as Chief Financial Officer. Based in Toronto, Eastwood has played an integral role in shaping the firm’s capital strategy, managing through transformations, and helping to sustain consistent earnings performance. His background includes years of leadership in corporate finance and business development roles.
The broader leadership team blends legal, technology, and finance expertise. These are not just seasoned executives—they’re industry veterans who’ve helped guide the company through acquisitions, tech upgrades, and shifts in customer needs. This steady, experienced team has been instrumental in the company’s growth and operational efficiency, particularly over the past few years as it leans further into AI and automation.
Valuation and Stock Performance
Thomson Reuters has seen its stock climb steadily over the last year, trading recently around the $175 mark. That’s not a huge leap from its 52-week high, but the climb has been smooth and largely free from dramatic swings. This consistency reflects the company’s low beta of 0.33, meaning it tends to move less than the market overall. That kind of calm price action can be appealing, especially in unpredictable market cycles.
From a valuation standpoint, TRI isn’t cheap. Its trailing P/E ratio is just under 36, with a forward P/E over 45. That places it above the average for most of its sector peers. The price-to-sales ratio sits above 10, and its price-to-book value has remained well above 6. Those metrics could make some investors hesitate—but in TRI’s case, you’re not buying a bargain-bin stock. You’re buying quality, reliability, and long-term cash generation. The market seems to agree, as evidenced by steady institutional interest and a stock price that has remained resilient even during wider market corrections.
Recent upgrades to analyst price targets reflect this sentiment. With most of the Street holding a “Hold” rating but nudging targets higher, there’s a sense that the valuation is justified by stable earnings, strong free cash flow, and consistent dividend growth. It’s not priced for rapid expansion—it’s priced for dependable performance.
Risks and Considerations
While Thomson Reuters enjoys a strong market position, there are a few considerations worth keeping in mind. The company operates in industries that are deeply entrenched but not immune to disruption. Legal tech, for example, is a growing space with rising competition from both startups and legacy players modernizing their platforms. TRI’s continued investment in AI is a smart move, but execution will be key.
There’s also a pricing premium baked into the stock. At these valuation levels, any earnings miss or slowdown in organic growth could put pressure on the share price. With the stock trading at a high multiple, it leaves little room for error—particularly if macroeconomic conditions shift or subscription growth slows.
Another area to monitor is the integration of recent acquisitions. While these strategic buys align well with the company’s digital ambitions, merging platforms and systems always carries risk. If execution falters or synergies take longer than expected to materialize, it could weigh on profitability in the near term.
Currency exposure is another often-overlooked point. With a global footprint, TRI is susceptible to exchange rate fluctuations, particularly between USD and CAD. These shifts can have subtle but real effects on reported earnings and costs.
Lastly, while debt levels are modest and well-managed, continued investment in AI and digital platforms will require consistent capital deployment. As long as free cash flow remains strong, it’s manageable—but it’s something to watch if market conditions tighten or costs unexpectedly rise.
Final Thoughts
Thomson Reuters doesn’t shout for attention. It’s not flashy. But what it delivers is a rare combination of stability, consistent execution, and forward-thinking leadership. The business is deeply embedded in legal, tax, and compliance workflows—sectors that value precision, consistency, and trust. That’s a long-term advantage not easily replicated.
The management team’s steady hand, particularly through ongoing digital transformation and an evolving AI strategy, gives confidence in the company’s direction. While the stock isn’t trading at a discount, it reflects what you’re getting: a dependable performer with a growing dividend, strong free cash flow, and a clear focus on evolving with its customer base.
In a world full of noise, TRI’s quiet strength makes it stand out. Not for its drama, but for its discipline.