Q: Hi Peter, I don't have any shares of TRI but have wanted some in the past. Is it still worth buying considering the drop it has had and would now be a good time to buy or is it better to wait for the split as I don't think I would be participating in the dividend. Thanks
5i Research Answer:
We think TRI is interesting as an "accumulate" over time. The stock is cheap and near its historical valuation lows. The dividend is 3.10% and continues to grow. The company has capital to move into new growth initiatives, and consensus still calls for solid earnings growth. Offsetting this is continued negative sentiment, which cannot really be predicted in any way. We would be OK buying a small position, about 1/4, and watching developments, markets, and sentiment. We would not be in a rush here but think it is a good company overall for the long term.