thomson reuters

BROADRIDGE FINANCIAL SOLUTIONS INC. $54 (New York symbol BR; Aggressive Growth Portfolio, Finance sector; Shares outstanding: 118.6 million; Market cap: $6.4 billion; Price-to-sales ratio: 2.3; Dividend yield: 2.2%; TSINetwork Rating: Average; www.broadridge.com) serves the investment industry in three main areas: investor communications, securities processing and transaction clearing. The company processes 90% of all proxy votes in the U.S. and Canada. Broadridge was a subsidiary of Automatic Data Processing until April 2007, when ADP spun it off as a separate firm. Acquisitions drive profits higher...

After selling its struggling newspaper business, Thomson Reuters thrives as a purveyor of financial, legal and tax information products.

The old Thomson Corp. wisely got out of the newspaper business in the early 2000s to focus on its faster-growing information-services operation. In 2008, it added more highquality financial data when it acquired the 160-year-old Reuters news agency for $17 billion U.S. in cash and shares. This deal also cut Thomson’s high reliance on North America. The company’s timing was bad, however, as the 2008/09 financial crisis forced many of its banking and brokerage clients to spend much less on information products. That delayed the gains Thomson expected from the Reuters deal. However, the company is now benefiting from this acquisition, as well as a long-range restructuring plan. That’s pushing up its earnings and freeing up cash for share buybacks and dividends....

Building profits with its financial information products since the crisis of 2008, Thomson-Reuters remains one of our top dividend stocks.

Overall earnings fell 1.2%, to $410 million from $415 million, while per-share profits gained 2.0%, to $0.52 from $0.51, on fewer shares outstanding. Excluding currency rates, the company’s earnings per share jumped 14%.

Thomson’s sound balance sheet will let it keep developing new products, particularly ones it can deliver over the Internet or through mobile devices. As of June 30, 2015, the company held cash of $1.1 billion, or $1.44 a share. Its long-term debt of $7.0 billion is a manageable 21% of its market cap.

The stock has gained 30% in the past year and now trades at 20.5 times Thomson’s likely 2015 earnings of $2.03 a share. That’s still an acceptable multiple in light of its high market share, unique products and improving profit margins. The $1.34 dividend yields 3.2%.

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THOMSON REUTERS CORP. $54 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 784.1 million; Market cap: $42.3 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information products in four main areas: financial (53% of 2014 revenue, 39% of earnings); legal (28%, 39%); tax (11%, 12%); and intellectual property and science (8%, 10%). The company continues to see rising demand for its financial-information products in the wake of the 2008 financial crisis. It’s also doing a good job of getting traders and portfolio managers to upgrade their older electronic terminals, through which Thomson supplies them with news and financial data, to its new Eikon platform. In the three months ended June 30, 2015, Thomson’s revenue fell 3.8%, to $3.0 billion from $3.2 billion (all amounts except share price and market cap in U.S. dollars). Without the negative impact of the high U.S. dollar on its overseas operations (40% of the total), revenue rose 2%....

THOMSON REUTERS CORP. $48 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 784.8 million; Market cap: $37.7 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) (All amounts except share price and market cap in U.S. dollars) now plans to buy back up to $1 billion worth of its shares by the end of 2016.

Meantime, the company’s revenue fell 2.7% in the three months ended March 31, 2015, to $3.0 billion from $3.1 billion a year earlier. Without the effect of the high U.S. dollar, revenue rose 2%.

Earnings per share declined 4.3%, or $0.44 from $0.46, but gained 8.7% if you disregard changes in currency exchange rates. Banks and brokerages are buying more of Thomson’s information products. Sales to tax, accounting and legal professionals also remain strong.

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BOMBARDIER INC., Toronto symbols BBD.A $2.52 and BBD.B $2.47, plans to cut production of its Global 5000 and 6000 business jets. That’s partly because economic sanctions have hurt sales in Russia. Demand has also weakened in China and Latin America. The company will replace these planes with newer, larger versions called the Global 7000 and 8000 in 2016 and 2017. That will help it compete with new models from Gulfstream Aerospace and Dassault Aviation. As a result, Bombardier will lay off 1,800 employees (about 3% of its workforce) at its plants in Toronto, Montreal and Belfast, Northern Ireland. It didn’t say how much it expects to pay in severance and other costs....

THOMSON REUTERS CORP. $48 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 784.8 million; Market cap: $37.7 billion; Price-to-sales ratio: 3.0; Dividend yield: 3.4%; TSINetwork Rating: Above Average; www.thomsonreuters.com) (All amounts except share price and market cap in U.S. dollars) now plans to buy back up to $1 billion worth of its shares by the end of 2016. Meantime, the company’s revenue fell 2.7% in the three months ended March 31, 2015, to $3.0 billion from $3.1 billion a year earlier. Without the effect of the high U.S. dollar, revenue rose 2%. Earnings per share declined 4.3%, or $0.44 from $0.46, but gained 8.7% if you disregard changes in currency exchange rates. Banks and brokerages are buying more of Thomson’s information products. Sales to tax, accounting and legal professionals also remain strong....

THOMSON REUTERS CORP. $52 (Toronto symbol TRI; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 791.8 million; Market cap: $41.2 billion; Price-to-sales ratio: 3.3; Dividend yield: 3.2%; TSINetwork Rating: Above Average; www.thomsonreuters.com) sells specialized information products in four main areas: financial (53% of 2014 revenue, 39% of earnings); legal (28%, 39%); tax (11%, 12%); and intellectual property and science (8%, 10%). (All amounts except share price and market cap in U.S. dollars.)

The Americas supplied 60% of Thomson’s 2014 revenue, followed by Europe (30%) and Asia (10%).

Many banks and financial services firms cut spending on the company’s products following the 2008 financial crisis. In response, it laid off staff and simplified its operations.

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