When it comes to investing and growing your hard-earned capital over the long run, the best investments to buy are stocks that you can own for years and will consistently outperform the market, such as Thomson Reuters (TSX: TRI).
Thomson Reuters is one of the largest and most well-known Canadian stocks, with a market cap of more than $75 billion. Furthermore, it’s also an incredibly defensive business making the blue-chip stock ideal for Canadians to buy and hold with confidence, even in uncertain economic environments like we’re experiencing today.
Most importantly, though, Thomson Reuters has proven what a high-quality and consistent stock it can be. In fact, since the start of 2014, Thomson Reuters is up over 430%. That’s a compounded annual growth rate of 19.4% over the last nine and a half years.
Therefore, not only has the stock massively outperformed the TSX and even the S&P 500, which are up 47% and 137%, respectively, over that stretch, but it also means if you had invested $2,500 at the start of 2014, your investment would be worth more than $13,250 today.
It’s these investments that can grow rapidly and consistently while also protecting your capital through higher-volatility market environments which are the best to buy and hold for years.
So let’s look at what exactly Thomson Reuters does and why it’s one of the best and most reliable long-term stocks that Canadians can buy for their portfolio.
Why is Thomson Reuters stock one of the best investments Canadian investors can buy?
There are a number of reasons why Thomson Reuters is a high-quality blue-chip stock that investors can have confidence buying and holding for the long term.
First off, the company offers a number of important services making it highly defensive while also diversifying its operations.
These segments include what it refers to as its big three — legal professionals, corporate services and tax and accounting professionals, which account for over 80% of the company’s revenues. In addition, it also has Reuters News which consists of roughly 2,400 journalists all over the world as well as its global print segment.
Plus, on top of being diversified by operating segment, Thomson Reuters stock is also well-diversified geographically, with operations all over the world.
Another attractive aspect of its business is that roughly 80% of its revenue is recurring, which is one of the main reasons why it’s such a recession-resistant company. Furthermore, roughly 90% of its revenues are delivered electronically, which includes cloud-based offerings, showing what a high-quality company Thomson Reuters is and why it’s constantly able to generate significant cash flow.
So it’s not surprising that in addition to offering tonnes of capital gains potential over the long run, Thomson Reuters stock also has the fifth longest dividend growth streak in Canada, currently at 29 straight years. And in just the last five years, that dividend has been increased by over 42%.
Therefore, it’s clear why Thomson Reuters has been such an impressive stock over the last decade and continues to offer impressive long-term growth potential. In the first quarter of this year, revenues from its big three segments already saw organic growth of roughly 7%.
So if you’re looking for reliable stocks to buy with confidence and hold for years, Thomson Reuters is certainly one of the best investments in Canada.
