Why H&R BLOCK INC (NYSE:HRB) is a Top Pick for Dividend Investors.

Unearth the potential of H&R BLOCK INC (NYSE:HRB) as a dividend stock recommended by our stock screening tool. HRB maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Examination for HRB

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. HRB has been awarded a 7 for its dividend quality:

• HRB's Dividend Yield is rather good when compared to the industry average which is at 4.74. HRB pays more dividend than 94.52% of the companies in the same industry.
• HRB has paid a dividend for at least 10 years, which is a reliable track record.
• HRB has not decreased their dividend for at least 10 years, which is a reliable track record.
• HRB pays out 35.38% of its income as dividend. This is a sustainable payout ratio.
• The dividend of HRB is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Examination for HRB

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. HRB was assigned a score of 5 for health:

• An Altman-Z score of 3.04 indicates that HRB is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.04, HRB is in the better half of the industry, outperforming 73.97% of the companies in the same industry.
• HRB has a debt to FCF ratio of 3.32. This is a good value and a sign of high solvency as HRB would need 3.32 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 3.32, HRB is in the better half of the industry, outperforming 76.71% of the companies in the same industry.

What does the Profitability looks like for 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. HRB was assigned a score of 8 for profitability:

• HRB has a better Return On Assets (19.48%) than 95.89% of its industry peers.
• HRB's Return On Invested Capital of 36.07% is amongst the best of the industry. HRB outperforms 97.26% 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 12.02%.
• The 3 year average ROIC (27.24%) for HRB is below the current ROIC(36.07%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 14.59%, HRB belongs to the best of the industry, outperforming 91.78% of the companies in the same industry.
• HRB's Profit Margin has improved in the last couple of years.
• The Operating Margin of HRB (20.92%) is better than 89.04% of its industry peers.
• In the last couple of years the Operating Margin of HRB has grown nicely.

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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.