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

Take a closer look at H&R BLOCK INC (NYSE:HRB), a stock of interest to dividend investors uncovered by our stock screener. NYSE:HRB excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Insights: 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:

• Compared to an average industry Dividend Yield of 2.56, HRB pays a better dividend. On top of this HRB pays more dividend than 98.51% 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 their dividend for at least 10 years, which is a reliable track record.
• The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.

Deciphering NYSE:HRB's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HRB, the assigned 7 reflects its health status:

• An Altman-Z score of 3.04 indicates that HRB is not in any danger for bankruptcy at the moment.
• HRB has a better Altman-Z score (3.04) than 74.63% 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's Debt to FCF ratio of 1.98 is amongst the best of the industry. HRB outperforms 82.09% of its industry peers.
• Although HRB does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Looking at the Profitability

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 7 is noteworthy for profitability:

• HRB's Return On Assets of 12.46% is amongst the best of the industry. HRB outperforms 91.04% of its industry peers.
• With an excellent Return On Equity value of 1193.95%, HRB belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• HRB's Return On Invested Capital of 20.75% is amongst the best of the industry. HRB outperforms 95.52% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for HRB is significantly above the industry average of 9.44%.
• The last Return On Invested Capital (20.75%) for HRB is well below the 3 year average (27.02%), which needs to be investigated, but indicates that HRB had better years and this may not be a problem.
• Looking at the Profit Margin, with a value of 10.48%, HRB belongs to the top of the industry, outperforming 89.55% of the companies in the same industry.
• HRB's Operating Margin of 14.77% is amongst the best of the industry. HRB outperforms 80.60% 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.