Why the dividend investor may take a look at NYSE:HRB.

Last update: Jan 3, 2025

H&R BLOCK INC (NYSE:HRB) has caught the attention of dividend investors as a stock worth considering. NYSE:HRB excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Looking at the Dividend

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:

Compared to an average industry Dividend Yield of 4.42, HRB pays a better dividend. On top of this HRB pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, HRB pays a bit more dividend than the S&P500 average.
HRB has been paying a dividend for at least 10 years, so it has 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.
The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Analysis for NYSE:HRB

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:HRB has earned a 5 out of 10:

HRB has an Altman-Z score of 3.41. This indicates that HRB is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HRB (3.41) is better than 79.37% 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's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. HRB outperforms 76.19% of its industry peers.

Understanding NYSE:HRB's Profitability

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 7 out of 10:

The Return On Assets of HRB (16.49%) is better than 92.06% of its industry peers.
HRB's Return On Invested Capital of 25.89% is amongst the best of the industry. HRB outperforms 95.24% 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 11.87%.
The Profit Margin of HRB (11.05%) is better than 79.37% of its industry peers.
In the last couple of years the Profit Margin of HRB has grown nicely.
HRB's Operating Margin of 15.17% is amongst the best of the industry. HRB outperforms 80.95% of its industry peers.
HRB's Operating Margin has improved in the last couple of years.

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

Keep in mind

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.