If I might put each greenback I’ve right into a single inventory and depart it alone for the subsequent decade, it might be Thomson Reuters (TSX:TRI).
This Toronto-based content material and know-how firm isn’t flashy and doesn’t commerce on hype. However it sits on the intersection of synthetic intelligence, skilled companies, and irreplaceable information.
Valued at a market cap of $57 billion, this large-cap Canadian inventory is down 56% from all-time highs.
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Is that this TSX tech inventory a great purchase?
Most Canadians nonetheless consider Thomson Reuters as a information wire and authorized database enterprise.
Nonetheless, over the previous six years, CEO Steve Hasker and outgoing CFO Mike Eastwood have reworked the corporate into one thing far more precious.
- In 2019, complete natural income progress was 4%, and EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) margins sat at 31.5%.
- For 2026, the corporate is guiding to 7.5% to eight% complete natural progress, practically 9.5% for its three core segments, and EBITDA margins exceeding 40%.
- Free money move might nearly double from US$1.1 billion in 2019 to US$2.1 billion in 2026.
The Canadian inventory has an AI moat
Thomson Reuters has a widening AI moat.
- TRI’s authorized AI product, CoCounsel, has crossed a million customers.
- Its Westlaw Benefit product, launched in August 2025, is performing properly above expectations.
- And a model new model of CoCounsel, at the moment in alpha with a few hundred prospects, strikes into beta on April 20 and is about for basic launch in the summertime of 2026.
- Thomson Reuters goals to focus on fiduciary-grade professionals, together with legal professionals, taxmen, and auditors, thereby narrowing the aggressive area considerably.
Hasker outlined 4 particular benefits the corporate brings to that market.
- The primary is its huge proprietary information repositories that rivals are unable to copy.
- The second is 4,500 educated area specialists who validate AI outputs earlier than they attain prospects.
- The third is an ironclad information privateness assure, that means consumer inputs by no means change into a part of AI coaching information.
- The fourth is round the clock professional assist that no startup can match at scale.
“AI can’t be trusted to test AI,” Hasker famous on the convention. This assertion explains why Thomson Reuters occupies a sturdy aggressive place that general-purpose AI fashions can’t simply threaten.
A rising dividend payout
Thomson Reuters has raised its dividend 10% yearly for 5 straight years. The truth is, the TSX dividend inventory has raised its annual payout from US$1.01 per share in 2006 to US$2.62 per share in 2026, indicating a yield of two.7%.
It lately executed a US$1.2 billion share buyback and nonetheless has ample firepower for strategic acquisitions in segments resembling oblique tax, digital invoicing, and fraud and compliance, all of which Hasker recognized as double-digit progress alternatives.
The Tax, Audit, and Accounting Professionals phase is guiding to 11%–13% natural progress for 2026. A labour scarcity within the career is creating tailwinds, as corporations lean tougher on Thomson Reuters merchandise to do extra work with fewer individuals.
The Silly takeaway
Thomson Reuters is a compounding machine with a defensible AI technique, a rising dividend, and a stability sheet that offers administration actual choices.
Analysts monitoring the Canadian dividend inventory forecast free money move to develop from US$1.95 billion in 2025 to US$2.87 billion in 2029.
If TRI inventory is priced at 25 instances ahead FCF, which is beneath its 10-year common of 37 instances, it might surge over 70% inside the subsequent three years. If we account for dividends, cumulative returns could possibly be nearer to 80%.
