1 Ideal TSX Dividend Stock, Down 44%, to Buy and Hold for a Lifetime

A dividend stock that’s down can be a sneaky lifetime buy because you get paid to wait while the price catches its breath. The market often knocks down even great businesses for reasons that have little to do with long-term value, like rates, rotations, or a few quarters that look “less perfect.” If the dividend stays covered and the business keeps compounding, a lower share price can boost your starting yield and your long-run return. The trick is simple: you want a temporary dip, not a permanent impairment. Which is why we’re looking at this dividend stock on the TSX today.

TRI

Thomson Reuters (TSX: TRI) sits in a sweet spot for buy-and-hold investors as it sells mission-critical tools to professionals. It serves legal, tax and accounting, and corporate customers with workflow software, content, and data, plus it owns the Reuters news operation. Much of its revenue comes from subscriptions, which keeps the business steadier than most “tech” names. That stability matters when you want a dividend you can rely on for years.

The share price has clearly had a rough stretch. The dividend stock recently traded around $168, which sits almost on its 52-week low of $167.25, and far below the 52-week high of $299.24. It’s therefore down about 44% from its 52-week high, which is exactly the kind of setup that gets long-term dividend investors interested again.

Zoom out, though, and the long-term chart still looks like a compounding story with a bad year, not a broken one. Over the past year, the stock is down roughly 24%, but it still sits up about 61% versus five years ago. That’s a useful reminder for anyone thinking in TFSA decades. Short-term pain can show up even in high-quality names, and that’s often where the better entry points appear.

Earnings support

Now to the numbers that actually matter. In its third quarter of 2025, Thomson Reuters reported revenue of $1.8 billion and adjusted earnings per share (EPS) of $0.85. It also reported free cash flow of $526 million in the quarter, down year over year, largely tied to higher capital spending. That mix tells you growth remains real, but the dividend stock is also investing heavily, which can dent near-term cash flow.

The operational story still looks solid, especially in the parts that drive recurring revenue. The “Big 3” segments delivered 9% organic revenue growth, and the dividend stock reaffirmed its 2025 guidance for organic revenue growth of 7% to 7.5%. It also raised its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin expansion forecast to 100 basis points. This signals confidence in profitability even while it pours money into product development.

The valuation still asks you to pay for quality, even after the drop. Shares trade around 31 times earnings at writing, with forward multiples still elevated for a “sleep well at night” stock. The dividend yield sits around the 2% range, so this is not a high-yield income play. You’re buying dividend growth, buybacks, and steady compounding, with the risk that the market keeps compressing the multiple if rates stay higher or if AI competition heats up faster than expected.

Bottom line

So, is Thomson Reuters a strong buy while it’s down? It can be, especially if you want a durable, subscription-heavy business that can grow through cycles and you’re comfortable holding for a decade or longer. The dividend stock is basically sitting on its 52-week low, which gives you a much better setup than it did near $300. And here’s what even $7,000 could bring in from dividends alone.

I’d still keep expectations realistic. It probably won’t “snap back” overnight, and the dividend won’t thrill income hunters. But if your goal is lifetime TFSA compounding with a dependable business, TRI looks like the kind of dip that long-term investors can actually use.