Why NYSE:HRB qualifies as a good dividend investing stock.

Our stock screener has spotted H&R BLOCK INC (NYSE:HRB) as a good dividend stock with solid fundamentals. NYSE:HRB shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis for NYSE:HRB

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:HRB has received a 7 out of 10:

• HRB's Dividend Yield is rather good when compared to the industry average which is at 45.51. HRB pays more dividend than 89.06% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• HRB's earnings are growing more than its dividend. This makes the dividend growth sustainable.

What does the Health looks like for NYSE:HRB

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 7 out of 10:

• HRB has an Altman-Z score of 3.58. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of HRB (3.58) is better than 81.25% of its industry peers.
• The Debt to FCF ratio of HRB is 2.27, which is a good value as it means it would take HRB, 2.27 years of fcf income to pay off all of its debts.
• HRB has a Debt to FCF ratio of 2.27. This is in the better half of the industry: HRB outperforms 78.13% of its industry peers.
• Even though the debt/equity ratio score it not favorable for HRB, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Evaluating Profitability: NYSE:HRB

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HRB scores a 8 out of 10:

• Looking at the Return On Assets, with a value of 13.33%, HRB belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
• HRB has a Return On Equity of 473.79%. This is amongst the best in the industry. HRB outperforms 100.00% of its industry peers.
• The Return On Invested Capital of HRB (21.03%) is better than 92.19% of its industry peers.
• HRB had an Average Return On Invested Capital over the past 3 years of 27.24%. This is significantly above the industry average of 11.90%.
• The 3 year average ROIC (27.24%) for HRB is well above the current ROIC(21.03%). The reason for the recent decline needs to be investigated.
• HRB's Profit Margin of 11.31% is amongst the best of the industry. HRB outperforms 82.81% of its industry peers.
• HRB's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 15.79%, HRB is doing good in the industry, outperforming 79.69% of the companies in the same industry.
• HRB's Operating Margin has improved in the last couple of years.

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Check the latest full fundamental report of HRB for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice. 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.