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

Last update: Jun 19, 2025

H&R BLOCK INC (NYSE:HRB) stands out as a strong candidate for dividend investors, according to our Best Dividend stock screener. The company combines a solid dividend profile with healthy profitability and reasonable financial health, making it an appealing option for income-focused portfolios.

Dividend Strength

Attractive Yield: HRB offers a dividend yield of 2.68%, which is competitive compared to the S&P 500 average of 2.40%. It also ranks favorably within its industry, paying more than 95.71% of its peers.
Reliable Track Record: The company has consistently paid dividends for at least 10 years without reductions, demonstrating a commitment to shareholder returns.
Sustainable Payout: With a payout ratio of 34.30%, HRB retains enough earnings to reinvest in the business while maintaining dividend stability.
Modest Growth: The dividend has grown at an annual rate of 4.72%, supported by earnings growth, ensuring sustainability.

Profitability Highlights

Strong Margins: HRB’s Profit Margin (15.06%) and Operating Margin (21.75%) rank in the top tier of its industry, outperforming 88.57% and 90.00% of peers, respectively.
High Returns: The company’s Return on Invested Capital (38.40%) is exceptional, well above the industry average.
Consistent Earnings: HRB has been profitable in four of the past five years, with positive cash flow in each of those years.

Financial Health Considerations

Solvency: HRB has a solid Altman-Z score (3.02), indicating low bankruptcy risk, and a manageable Debt-to-FCF ratio (2.30), suggesting it can comfortably service its debt.
Liquidity Concerns: The company’s Current Ratio (0.78) is below industry norms, which could pose short-term liquidity challenges, though its overall financial position remains stable.

For a deeper dive into HRB’s fundamentals, review the full analysis report.

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Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.