Expect more dividend hikes

Article Excerpt

THOMSON REUTERS CORP. $118 is a buy. The company (Toronto symbol TRI; Conservative Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 497.0 million; Market cap: $58.6 billion; Dividend yield: 1.7%; Dividend Sustainability Rating: Highest; www.thomsonreuters.com) last raised its quarterly dividend with the March 2021 payment. Investors now receive $0.405 U.S. a share, up 6.6% from $0.38 U.S. The new annual rate of $1.62 U.S. yields a solid 1.7%. In January 2021, Thomson and Blackstone Group merged their Refinitiv financial information business with LSE—the London Stock Exchange Group plc (Over-the-counter Pink Sheets symbol LDNXF). As of May 3, 2021, Thomson’s stake in LSE was worth $7.4 billion U.S. The company plans to sell these shares (in tranches) over the next few years. It will likely use that cash for more dividend hikes and share buybacks. Thomson Reuters is a buy. buy…