Our stock screener has singled out H&R BLOCK INC (NYSE:HRB) as a promising choice for dividend investors. NYSE:HRB not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.
Exploring NYSE:HRB's Dividend
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:
Compared to an average industry Dividend Yield of 29.19, HRB pays a better dividend. On top of this HRB pays more dividend than 95.38% of the companies listed 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.
30.36% 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.
A Closer Look at Health for NYSE:HRB
Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRB has achieved a 5 out of 10:
The Altman-Z score of HRB (2.98) is better than 73.85% of its industry peers.
The Debt to FCF ratio of HRB is 3.82, which is a good value as it means it would take HRB, 3.82 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.82, HRB is in the better half of the industry, outperforming 75.38% of the companies in the same industry.
Looking at the Profitability
Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HRB has achieved a 7:
The Return On Assets of HRB (21.18%) is better than 95.38% of its industry peers.
With an excellent Return On Invested Capital value of 30.99%, HRB belongs to the best of the industry, outperforming 96.92% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 14.10%.
The 3 year average ROIC (27.02%) for HRB is below the current ROIC(30.99%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 16.86%, HRB belongs to the best of the industry, outperforming 93.85% of the companies in the same industry.
Looking at the Operating Margin, with a value of 21.99%, HRB belongs to the top of the industry, outperforming 87.69% of the companies in the same industry.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.