Is NYSE:HRB suited for dividend investing?

Our stock screener has singled out H&R BLOCK INC (NYSE:HRB) as a promising choice for dividend investors. NYSE:HRB not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Looking at the Dividend

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:

• HRB's Dividend Yield is rather good when compared to the industry average which is at 277.91. HRB pays more dividend than 92.19% of the companies 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.

Health Analysis 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 3.62 indicates that HRB is not in any danger for bankruptcy at the moment.
• HRB has a better Altman-Z score (3.62) than 78.13% 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.
• 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.

A Closer Look at Profitability for NYSE:HRB

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

• The Return On Assets of HRB (16.49%) is better than 90.63% of its industry peers.
• The Return On Invested Capital of HRB (25.89%) is better than 95.31% 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 12.48%.
• HRB's Profit Margin of 11.05% is fine compared to the rest of the industry. HRB outperforms 79.69% of its industry peers.
• HRB's Profit Margin has improved in the last couple of years.
• The Operating Margin of HRB (15.17%) is better than 79.69% of its industry peers.
• HRB's Operating Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.