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.

How do we evaluate the Dividend for NYSE:HRB?

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:HRB has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 5.03, HRB pays a better dividend. On top of this HRB pays more dividend than 96.97% of the companies listed 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 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 do we evaluate the 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 7 out of 10:

• An Altman-Z score of 3.11 indicates that HRB is not in any danger for bankruptcy at the moment.
• The Altman-Z score of HRB (3.11) is better than 80.30% of its industry peers.
• The Debt to FCF ratio of HRB is 1.98, which is an excellent value as it means it would take HRB, only 1.98 years of fcf income to pay off all of its debts.
• HRB has a better Debt to FCF ratio (1.98) than 83.33% 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.

Assessing Profitability for NYSE:HRB

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:

• HRB's Return On Assets of 12.46% is amongst the best of the industry. HRB outperforms 90.91% of its industry peers.
• HRB has a Return On Equity of 1193.95%. This is amongst the best in the industry. HRB outperforms 100.00% of its industry peers.
• HRB has a Return On Invested Capital of 20.75%. This is amongst the best in the industry. HRB outperforms 95.45% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for HRB is significantly above the industry average of 9.40%.
• The 3 year average ROIC (27.02%) for HRB is well above the current ROIC(20.75%). The reason for the recent decline needs to be investigated.
• HRB's Profit Margin of 10.48% is amongst the best of the industry. HRB outperforms 87.88% of its industry peers.
• HRB has a better Operating Margin (14.77%) than 81.82% 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.

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.