Topic: How To Invest

The Successful Investor Hotline – Friday, January 17, 2025

Article Excerpt

THOMSON REUTERS CORP., $230.51, is your #1 Conservative Buy for 2025. The company sells specialized information (mainly through electronic channels) to professionals in the legal, and tax and accounting fields. It also owns the Reuters news service. Under a new plan to fuel its long-term growth, Thomson is now expanding the use of artificial intelligence (AI) software tools in its data offerings. For instance, AI can gather and review law documents at very high speed. The strategy will probably lift Thomson’s free cash flow (regular cash flow less capital expenditures) from $1.8 billion in 2024 to $1.9 billion in 2025 (all amounts except share price in U.S. dollars). That’s good news for investors as the company plans to return at least 75% of its annual free cash flow to shareholders in the form of dividends and share repurchases. The current annual dividend rate of $2.16 a share yields 1.4%. Based on that rate, aggregate dividend payments totalled roughly $975 million in 2024. Thomson’s shares…