TRI: AI & Dividends – A Curious Case

by

Right, so Thomson Reuters (TRI +11.91%). Shares jumped today – nearly 12%, if you’re keeping score, which, let’s be honest, you are if you’re reading this. Apparently, a million legal professionals are now using their AI-powered thingamajig, CoCounsel. A million. Honestly, it’s either a brilliant stroke of innovation or a terrifying sign of how quickly my profession is becoming obsolete. I’m leaning towards the latter, but dividends are dividends, aren’t they?

From AI Panic to…Cautious Optimism?

Look, the stock’s been hammered – down almost 50% over the past year. A proper thrashing. Everyone was convinced AI was going to eat the software world, and TRI was on the menu. It’s that familiar panic, isn’t it? We all get it. Suddenly everything you thought you knew is…questionable. But here’s the thing about panic: it usually creates opportunities. And opportunities, my friends, can pay dividends.

This CoCounsel thing? It’s not just some chatbot. It’s digging deep into legal research, speeding up litigation – basically doing all the tedious stuff lawyers usually bill you an arm and a leg for. It integrates with all the usual suspects – Westlaw, Practical Law, even Microsoft 365. It’s a bit like giving a super-powered assistant to every barrister. I’m not thrilled about it, personally, but I’m a pragmatist. And a dividend hunter.

They’re saying it’s built on 175 years of content and “expert-developed validation logic.” Sounds…intense. Like they’ve bottled the collective wisdom of every lawyer who ever lived. Or maybe it’s just a really good algorithm. Either way, the CEO, Steve Hasker, is keen to reassure everyone that customer data is safe. Which, frankly, is the least they can do.

Loading widget...

Funny thing is, the stock fell when Anthropic announced their AI tools earlier this month. A proper dip. Now it’s bouncing back. Investors are fickle, aren’t they? They’re always chasing the next shiny object. But TRI is showing they can adapt. Which, as a dividend investor, is precisely what I want to see.

Now, let’s talk numbers. The stock is trading around 27 times trailing earnings. That’s well below its five-year average, which is…intriguing. They grew adjusted earnings 4% last year and saw organic revenue growth of 7%. Solid. They’re forecasting more growth in 2026. But here’s the kicker: in a world where AI could break down barriers to entry, what’s the right multiple? Honestly, I haven’t a clue. It’s a bit like trying to predict the weather. Or my own future. It’s going to take time for the market to figure this out.

So, am I buying? Let’s just say I’m…considering it. It’s a gamble, of course. Everything is. But a little bit of risk, if it leads to a nice, steady dividend, is a price I’m willing to pay. Don’t tell my financial advisor.

Read More

2026-02-24 19:54