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

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.

A Closer Look at Dividend for NYSE:HRB

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:HRB earns a 7 out of 10:

• HRB's Dividend Yield is rather good when compared to the industry average which is at 4.53. HRB pays more dividend than 93.75% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.27, 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.

How We Gauge Health for NYSE:HRB

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRB has received a 5 out of 10:

• An Altman-Z score of 3.41 indicates that HRB is not in any danger for bankruptcy at the moment.
• HRB's Altman-Z score of 3.41 is fine compared to the rest of the industry. HRB outperforms 79.69% of its industry peers.
• HRB has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as HRB would need 2.27 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.27, HRB is in the better half of the industry, outperforming 76.56% of the companies in the same industry.

Understanding NYSE:HRB's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:HRB was assigned a score of 7 for profitability:

• With an excellent Return On Assets value of 16.49%, HRB belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 25.89%, HRB belongs to the best of the industry, outperforming 95.31% 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 11.88%.
• The Profit Margin of HRB (11.05%) is better than 79.69% of its industry peers.
• In the last couple of years the Profit Margin of HRB has grown nicely.
• HRB has a better Operating Margin (15.17%) than 81.25% of its industry peers.
• In the last couple of years the Operating Margin of HRB has grown nicely.

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

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

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.