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H&R BLOCK INC (NYSE:HRB) – A Reliable Dividend Stock Worth Considering

By Mill Chart

Last update: May 28, 2025

H&R BLOCK INC (NYSE:HRB) was identified as a strong dividend candidate by our screening process. The company combines a solid dividend profile with good profitability and reasonable financial health, making it an interesting option for income-focused investors.

H&R Block stock chart

Dividend Strength

  • Attractive Yield: HRB offers a dividend yield of 2.58%, which is above the S&P 500 average of 2.40%.
  • Reliable Track Record: The company has paid dividends consistently for at least 10 years without reductions.
  • Sustainable Payout: With a payout ratio of 34.30%, HRB retains enough earnings to support future dividends and growth.
  • Modest Growth: The dividend has grown at an annual rate of 4.72%, indicating steady increases over time.

Profitability & Valuation

  • Strong Margins: HRB’s Profit Margin (15.06%) and Operating Margin (21.75%) rank among the best in its industry.
  • High ROIC: The company generates a Return on Invested Capital (ROIC) of 38.40%, well above its cost of capital.
  • Reasonable Valuation: Trading at a P/E of 13.10, HRB is cheaper than 87.5% of its industry peers.

Financial Health Considerations

  • Solvency: HRB’s Debt-to-FCF ratio (2.30) suggests manageable debt levels.
  • Liquidity Concerns: The Current Ratio (0.78) is below industry norms, which may require monitoring.

For a deeper look, review the full fundamental analysis of HRB.

Our Best Dividend Stocks screener provides more high-quality dividend ideas.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.

H&R BLOCK INC

NYSE:HRB (6/4/2025, 8:04:00 PM)

After market: 58.26 0 (0%)

58.26

-0.65 (-1.1%)



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ChartMill News Image8 days ago - ChartmillH&R BLOCK INC (NYSE:HRB) – A Reliable Dividend Stock Worth Considering

H&R Block (NYSE:HRB) offers a reliable 2.58% dividend yield, strong profitability, and reasonable valuation, making it a solid pick for dividend investors.

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