Investment Q&A

Q: Hi Peter and Team,

I have a full position in Thomson Reuters (TRI) which has surprisingly grown significantly in the last ~18 months (although it has pulled back somewhat lately). It is also paying about a 3.85% dividend.

On more than one occasion you’ve said you're not overly keen on TRI. Most recently, on Feb. 12/14 you said TRI “…still faces some challenges, but remains a viable blue-chip stock in the sector, with OK long term potential. Much of its fortunes depend on capital markets employment levels, which should improve with the markets.”

I am thinking of selling it and would like to replace it with one of the 5i A- or B+ rated companies that I don't already own. I have an otherwise well-balanced and diversified portfolio based entirely on the top rated and unrated companies in the 5i portfolio and other recommendations you’ve made in the past (e.g., IWO, IBB, VIG, VXUS, SLW, FNV).

Ideally I'd like to replace TRI with something that has better than “OK” prospects for growth and dividends going forward. It does not have to be in the same sector.

Would you be able to suggest which of the following top-rated 5i companies you would recommend as a replacement for TRI at this point in the market cycle?

Badger Daylighting Ltd. BAD A-
MacDonald Dettwiler MDA A-
A&W Royalties Income Fund AW.UN B+
Black Diamond BDI B+
Boston Pizza Royalties Fund BPF.UN B+
Boyd Group Income Fund BYD.UN B+
Capital Power Corp CPX B+
Davis and Henderson DH B+
Equity Financial Holdings EQI B+
First Capital Realty FCR B+
Fiera Capital Corp. FSZ B+
H & R Reit HR.UN B+
Leon's Furniture LNF B+
Mediagrif Interactive MDF B+
Tim Hortons THI B+

Thank you for your perspective.

Michael

Q: Hi Peter,

What is your opinion on TRI after the drop in the share price today? Is the dividend eligible for the Canadian dividend tax credit?

Mitch

Q: A recent guest on Market Call was touting the benefits of Eikon, which he said did amazing stuff and was half the cost of the Bloomberg Terminal, like the one you use. He implied that TRI, Thomson Reuters, has finally worked out the bugs with this business service and that the stock was a buy. Would you agree and are you familiar with Eikon? TRI apparently sold 100,000 of the desktop units (and subscriptions?) in the last quarter, which sounds like a lot to me, but maybe it isn't in comparison to the Bloomberg terminals already in place. Thanks, J.

Q: Hi Team,
How do you rate tri?
Many thanks for your excellent recommendations.

Q: TRI has had a good run this year, so is it time to take some profits? What do you expect it to do from here?

Q: Would like your opinion on Thompson Reuters for long term hold.

Tks
Kevin

Q: I am thinking of buying Thompson Reuters "TRI" for a long term hold in my TFSA. Could I get your opinion if TRI is a buy please.

Thank you.

Q: Peter, your opinion please on Thomson Reuters Corp TRI. I purchased this early last year in a registered account. Yield is good but the stock price has dropped significantly and seems to be going nowhere. The company has had difficulty with the rollout of its Eikon platform, which I believe they are not having a great deal of success competing against Bloomberg. I believe they are also repositioning some of their business units through acquisitions and divestitures. Do you consider this dead money? Buy more, hold or sell? Do you have any recommendations as an alternative in this segment? Thank you.

Q: Thomson Reuters (TRI) is considered by many to be a "dividend aristocrat" meaning it has paid a dividend consistently for several years. It's stock price is tracking about 10% to 15% above its ten year low and is paying a dividend of around 4.25%. Do you believe this company is worth investing in?