Why NYSE:HRB is a Top Pick for Dividend Investors.

Last update: Nov 30, 2023

Our stock screening tool has identified H&R BLOCK INC (NYSE:HRB) as a strong dividend contender with robust fundamentals. NYSE:HRB exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

How do we evaluate the Dividend for NYSE:HRB?

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HRB scores a 7 out of 10:

HRB's Dividend Yield is rather good when compared to the industry average which is at 2.53. HRB pays more dividend than 98.51% of the companies in the same industry.
HRB has paid a dividend for at least 10 years, which is a reliable track record.
HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
31.96% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.

Evaluating Health: NYSE:HRB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HRB was assigned a score of 5 for health:

HRB has an Altman-Z score of 3.47. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRB (3.47) is better than 83.58% of its industry peers.
HRB has a debt to FCF ratio of 2.01. This is a good value and a sign of high solvency as HRB would need 2.01 years to pay back of all of its debts.
HRB has a better Debt to FCF ratio (2.01) than 83.58% of its industry peers.

Profitability Analysis for NYSE:HRB

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HRB, the assigned 7 is a significant indicator of profitability:

HRB's Return On Assets of 22.16% is amongst the best of the industry. HRB outperforms 95.52% of its industry peers.
With an excellent Return On Invested Capital value of 35.88%, HRB belongs to the best of the industry, outperforming 98.51% of the companies in the same industry.
HRB had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 9.33%.
The 3 year average ROIC (27.02%) for HRB is below the current ROIC(35.88%), indicating increased profibility in the last year.
HRB's Profit Margin of 16.01% is amongst the best of the industry. HRB outperforms 94.03% of its industry peers.
HRB has a Operating Margin of 21.62%. This is amongst the best in the industry. HRB outperforms 91.04% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of HRB

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.