Thomson Reuters (TSX:TRI) is one of the most durable businesses in Canada. Valued at a market cap of almost $50 billion, the TSX dividend stock is dow
Thomson Reuters is not a distressed company, but a dominant one trading at a discount.
Let’s see why.
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Thomson Reuters stock has a wide competitive moat
Thomson Reuters is not a media company in the traditional sense, as it also provides the infrastructure for legal, tax, and accounting professions.
When a lawyer files a brief, they use Westlaw. When a tax professional prepares a complex return, they use Checkpoint. These tools are so deeply embedded in their workflows that switching them out would be like ripping out the plumbing mid-winter.
Chief Executive Steve Hasker made this clear at the Barclays 18th Annual Americas Select Conference on May 6, 2026, describing the company’s competitive position in plain terms: “85% of our content is not publicly available. It’s been created and curated by our experts.”
That content, built over decades, is the foundation of what the company now calls “fiduciary grade” artificial intelligence. These are AI tools built for professionals who cannot afford to be wrong.
A lawyer citing a hallucinated case in front of a judge does not get a second chance, and a tax accountant filing an incorrect return risks losing their license.
That is where Thomson Reuters wins, and where general-purpose AI models like Claude or Gemini cannot compete on equal footing, at least not without the proprietary data and expert support that TRI has spent generations building.
A strong performance in Q1 2026
In Q1, Thomson Reuters grew organic sales by 8% year over year, above management guidance of 7%.
The Legal Professionals business, excluding government customers, grew organically by 11% in the quarter, up from 9% in the prior quarter. The acceleration was attributed to strong demand for Westlaw Advantage, a premium tier launched in August 2025, and continued growth from CoCounsel.
For the full year 2025, the company grew revenues at 7% organically, expanded its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin by 100 basis points to 39.2%, and generated US$2 billion in free cash flow. Free cash flow is expected to reach US$2.1 billion in 2026 and increase to US$3.1 billion in fiscal 2030.
- One million users now rely on CoCounsel, the company’s AI assistant, which is a meaningful milestone.
- CoCounsel Next, the company’s next-generation agentic product, is currently in beta.
- Early feedback has been strong, and Chief Operations and Technology Officer Kirsty Roth noted at the Barclays conference that customers testing the beta are finding it solves roughly three times as many problems as the prior version.
The blue-chip Canadian company is also building its own legal-specific large language model called Thomson, developed by former Google DeepMind scientists. According to Hasker, it has already begun outperforming leading frontier models on specific legal tasks.
Is the TSX dividend stock a good buy?
Thomson Reuters returned US$605 million to shareholders through a return of capital in early 2026 and is one-third of the way through a separate US$600 million share buyback program.
The company also has approximately US$9 billion in available capital, including cash on hand, additional borrowing capacity, and ongoing free cash flow generation. The board reviews capital allocation regularly, meaning further buybacks or a special dividend are always on the table.
The regular dividend has grown steadily as well, making TRI one of the more reliable income stocks on the TSX.
Thomson Reuters has raised the annual dividend from US$1.53 in 2014 to US$2.66 in 2026. A widening free cash flow base should help it increase the annual dividend to US$3.56 in 2030, according to consensus estimates.
If the TSX stock is priced at 15 times forward FCF, it could deliver more than 65% returns over the next four years, after adjusting for dividends.
