Thomson Reuters’ Billion Dollar Buyback Signals Confidence After a Solid Quarter

Thomson Reuters Corporation (TSX:TRI)(NASDAQ:TRI), a global provider of legal, tax and news information services, recently unveiled plans to repurchase up to $1 billion of its own shares. The company announced that the Toronto Stock Exchange approved a new normal course issuer bid allowing the company to buy back up to 10 million common shares, or roughly 2.2 % of its outstanding shares, over the course of the next year. Management said the buyback is part of a disciplined capital strategy that balances growth initiatives with shareholder returns and noted that decisions about repurchases will depend on market conditions and alternative investment opportunities. The announcement came just days after Thomson Reuters reported a second quarter earnings beat. On August 6, the firm posted adjusted earnings per share of 87 cents, surpassing analysts’ expectations of 83 cents. And its organic growth rate was a solid 7%. Thomson Reuters has a long history of returning capital to shareholders through dividends and share repurchases, and the company’s resilient subscription based model generates predictable cash flow. Currently, the stock yields 1.4%. The decision to repurchase shares suggests that management believes the stock remains attractively valued relative to its growth prospects. And the move could help the stock rise higher; year to date, it’s up a little more than 2%. Combined with solid fundamentals and exposure to mission critical software and trusted data services, Thomson Reuters remains one of the TSX’s most popular stocks to invest in. It’s a compelling option for investors seeking safe, steady growth, and dependable dividend income.