Thomson Reuters (TRI) Dividend Increase

TRIThomson Reuters reported its quarterly earnings this morning, where it beat EPS estimates by $0.07. The company also announced that it will be increasing its annual dividends by $0.02, from $1.32 to $.134, a raise of 1.5%. This is the 22nd consecutive annual increase. The new quarterly dividend amount of $0.335 is payable on Mar 16, 2015 to common shareholders of record as of Feb 23, 2015.

From the earnings release statement:

  • Revenues grew 1% for the full year and the fourth quarter, before currency
    • Organic revenue flat for the full year and up 1% in the fourth quarter
  • Financial & Risk net sales were positive for both the full year and the fourth quarter
    • First year of positive net sales since 2008
  • Adjusted EBITDA increased 8% for the full year and was up 30% for the fourth quarter
    • The margin for the full year was 26.3% vs. 24.5% in the prior year
  • Underlying operating profit increased 14% for the full year and was up 65% for the fourth quarter
    • The margin for the full year was 17.0% vs. 15.0% in the prior year
  • Full-year adjusted EPS was $1.85 vs. $1.54 in 2013 and fourth-quarter adjusted EPS was $0.43 vs. $0.21 in the prior-year period
    • Excluding charges from both periods, adjusted EPS was $2.00 for the full year and $0.53 for the fourth quarter
    • Foreign currency had a $0.02 negative impact on adjusted EPS for the full year and fourth quarter
  • Board approves $0.02 annual dividend increase to $1.34 per share, representing the 22nd consecutive annual increase

2014 was a year of solid progress with good execution across the company, and marks the third consecutive year when we have met, or exceeded, our financial outlook,” said James C. Smith, chief executive officer of Thomson Reuters. “Our Financial business recorded its first year of positive net sales since 2008, and our Professional businesses continued to build from a solid foundation and take advantage of attractive growth opportunities. I am pleased to say that we expect to return to organic revenue growth and achieve greater profitability in 2015.

My portfolio consists of 48 shares of Thomson Reuters, increasing my annual dividends from $63.36 to $64.32, an increase of $0.96.

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