Why NYSE:HRB provides a good dividend, while having solid fundamentals.

Last update: May 27, 2024

H&R BLOCK INC (NYSE:HRB) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HRB demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Analysis for NYSE:HRB

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:HRB was assigned a score of 7 for dividend:

HRB's Dividend Yield is rather good when compared to the industry average which is at 25.70. HRB pays more dividend than 95.31% of the companies in the same industry.
HRB has been paying a dividend for at least 10 years, so it has a reliable track record.
HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
37.85% of the earnings are spent on dividend by HRB. This is a low number and sustainable payout ratio.
HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing 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 6 out of 10:

HRB has an Altman-Z score of 3.00. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRB (3.00) is better than 78.13% of its industry peers.
The Debt to FCF ratio of HRB is 2.20, which is a good value as it means it would take HRB, 2.20 years of fcf income to pay off all of its debts.
HRB has a better Debt to FCF ratio (2.20) than 81.25% of its industry peers.

Profitability Examination for NYSE:HRB

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:HRB, the assigned 6 is noteworthy for profitability:

HRB has a better Return On Assets (14.74%) than 92.19% of its industry peers.
With an excellent Return On Invested Capital value of 26.01%, HRB belongs to the best of the industry, outperforming 93.75% 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 14.79%.
The Profit Margin of HRB (12.58%) is better than 89.06% of its industry peers.
HRB has a better Operating Margin (16.60%) than 81.25% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of HRB contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.