FTSE 100 incumbent RELX (LSE: REL) is one stock I’d love to buy when I have some free funds to invest.

Let me explain why!

Data king

I’d agree with those willing to argue that RELX probably isn’t a household name. It doesn’t have the same pull as other popular brands. However, it has the hallmarks of a smashing company that provides a key product to many businesses across the world.

A leader in data and analytics services, it is renowned for the high-quality actionable information it provides to professionals across the world. A prime example of this is its LexisNexis database used by the legal profession. I’ve used this personally in a previous life. For context, it contains 138bn legal and news documents for professionals in the industry to call upon.

RELX shares have had a fantastic 12-month period, up 31%. At this time last year, they were trading for 2,788p, compared to current levels of 3,667p.

Why I like RELX shares

As well as RELX’s wide presence, vast sector coverage, and reputation for high-quality information, which make it an industry leader, there are other aspects I like too.

One of the biggest ones is the way it makes money. Its recurring revenue model, whereby subscribers pay a monthly fee to access the information they need, means revenues can grow and visibility is excellent from an investor perspective.

This same model has meant RELX has a good track record of performance. For example, I can see revenue and profit have grown each year for the past four years. However, I do understand that the past isn’t a guarantee of the future.

Speaking of the future, I’m really excited by RELX’s use of artificial intelligence (AI). It’s worth noting that RELX confirmed it hasn’t recently jumped onto the bandwagon, but has been incorporating AI into its tools for a while. However, now, it has created a specific suite of products built on AI to help boost performance and its offering.

Finally, a dividend yield of 1.65% sweetens the investment case. However, I do understand that dividends are never guaranteed.

Risks to note

Everyone loves a bargain, let’s be honest. RELX shares do not fall into that category, as they trade on a price-to-earnings ratio of close to 30. Perhaps growth is priced in? Could the shares take a hit if earnings fall? I’ll keep an eye on this.

The other risk is that of the AI revolution. Competition from other tech firms in this space could dent RELX. Plus, AI could be a flash in the pan, and real world applications could be years away, so I’ll be watching closely.

When it comes to RELX, I can’t help thinking of one of my investing role models in Warren Buffett. To paraphrase the Sage of Omaha, I’m happy to pay a fair price for a wonderful company.

In my view, the past has been good, and the future could be even more exciting for RELX.