H&R Block, Inc. (NYSE:HRB) to Issue Quarterly Dividend of $0.46

Key Points

• H&R Block declared a $0.46 quarterly dividend per share, payable January 6 to shareholders of record December 3. The annualized dividend is $1.84, a yield of about 3.6%.
• The dividend appears well covered: the current payout ratio is 35.7%, and analysts expect it to fall to 28.3% based on projected next-year earnings. H&R Block has raised its dividend for nine consecutive years.
• Recent quarterly results beat estimates, with revenue of $224.34 million—up 10.2% year over year—and a smaller-than-expected loss per share. Analysts’ consensus rating is “Hold,” with an average price target of $46.67.

H&R Block, Inc. (NYSE:HRB - Get Free Report) announced a quarterly dividend on Monday, November 9th. Shareholders of record on Thursday, December 3rd will be paid a dividend of $0.46 per share on Wednesday, January 6th. This represents a $1.84 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date of this dividend is Thursday, December 3rd.

H&R Block has increased its dividend by an average of 0.1% annually over the last three years and has raised its dividend annually for the last 9 consecutive years. H&R Block has a payout ratio of 35.7% indicating that its dividend is sufficiently covered by earnings. Research analysts expect H&R Block to earn $6.51 per share next year, which means the company should continue to be able to cover its $1.84 annual dividend with an expected future payout ratio of 28.3%.

H&R Block Trading Down 2.8%

HRB opened at $51.21 on Tuesday. The company has a current ratio of 1.13, a quick ratio of 1.13 and a debt-to-equity ratio of 12.69. The stock has a market capitalization of $6.27 billion, a PE ratio of 8.95, a PEG ratio of 0.73 and a beta of 0.40. H&R Block has a 1-year low of $28.16 and a 1-year high of $58.67. The firm has a 50-day moving average price of $46.76 and a two-hundred day moving average price of $39.60.

H&R Block (NYSE:HRB - Get Free Report) last released its quarterly earnings results on Monday, November 9th. The company reported ($1.40) EPS for the quarter, beating the consensus estimate of ($1.43) by $0.03. The business had revenue of $224.34 million for the quarter, compared to analysts' expectations of $212.28 million. H&R Block had a net margin of 18.59% and a negative return on equity of 214.84%. H&R Block's revenue was up 10.2% compared to the same quarter last year. During the same period in the prior year, the firm earned ($1.20) earnings per share. As a group, equities analysts anticipate that H&R Block will post 6.11 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

HRB has been the topic of several research reports. Weiss Ratings upgraded H&R Block from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, October 14th. The Goldman Sachs Group raised their price target on H&R Block from $29.00 to $33.00 and gave the stock a "sell" rating in a research report on Wednesday, August 12th. Zacks Research downgraded shares of H&R Block from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, November 3rd. Stephens started coverage on shares of H&R Block in a research note on Tuesday, July 28th. They set an "equal weight" rating and a $47.00 price objective on the stock. Finally, Barrington Research increased their price target on H&R Block from $50.00 to $60.00 and gave the stock an "outperform" rating in a report on Wednesday, August 12th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $46.67.

H&R Block Company Profile

H&R Block, Inc provides tax preparation and related financial services to individuals and small businesses. Its offerings include in-person tax preparation, online do-it-yourself filing, virtual tax assistance, and tax software, along with bookkeeping and other small-business services through its Block Advisors and Wave brands.

Founded in 1955 in Kansas City, Missouri, by brothers Henry and Richard Bloch, the company grew from a local tax preparation business into a provider of tax services through offices and digital channels.

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