We are adding Thomson Reuters Corp. (TSX: TRI, NYSE:TRI) to the Dividend Champions Portfolio. Thomson Reuters is a leading global provider of information and analytical tools to the financial, legal, tax, science and accounting professions.

One of the key attractions of the company is the high level of cash generated by its operations, resulting in attractive returns to shareholders through share buybacks and dividends.

The resolution of troubles experienced a few years ago in its largest division provides some upside growth potential. Meanwhile, the valuation is reasonable, and the relatively secure and growing dividend is currently yielding 3.7%.

We are initiating a small position now and will add to it in the future as opportunities arise. A full report on the company will be published in the March issue of Canadian Edge. Thomson Reuters is a buy below our estimated fair value of C$52/US$38.

At the same time, we are selling our 1.7% holding in the loyalty card operator Aimia Inc. (TSX: AIM, OTC: GAPFF) after the 10% jump in the share price over the past few days.

We are becoming increasingly concerned that the company is losing ground in a highly competitive field with large customers who are in control of their client base and in a position to dictate contract terms. Sell Aimia.