H&R Block, Inc. (NYSE:HRB) Plans Dividend Increase - $0.46 Per Share

Key Points

• H&R Block raised its quarterly dividend 9.5% to $0.46 per share, payable October 6 to shareholders of record September 3. The increase marks the company’s ninth consecutive year of dividend growth and implies an annualized yield of about 3.4%.
• The company reported quarterly earnings of $2.38 per share and revenue of $1.14 billion, exceeding analyst expectations of $2.21 EPS and $1.12 billion in revenue. Revenue increased 255.5% year over year.
• Management issued fiscal 2027 guidance for adjusted EPS of $6.04 to $6.24, while the dividend appears well covered by earnings given the current 32.6% payout ratio and an expected future ratio of 29.7%.

H&R Block, Inc. (NYSE:HRB - Get Free Report) announced a quarterly dividend on Tuesday, August 11th. Investors of record on Thursday, September 3rd will be given a dividend of 0.46 per share on Tuesday, October 6th. This represents a c) dividend on an annualized basis and a yield of 3.4%. The ex-dividend date of this dividend is Thursday, September 3rd. This is a 9.5% increase from H&R Block's previous quarterly dividend of $0.42.

H&R Block has raised its dividend payment by an average of 0.1%per year 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 32.6% meaning its dividend is sufficiently covered by earnings. Research analysts expect H&R Block to earn $5.65 per share next year, which means the company should continue to be able to cover its $1.68 annual dividend with an expected future payout ratio of 29.7%.

H&R Block Stock Performance

H&R Block stock traded up $6.87 during midday trading on Wednesday, hitting $53.54. 2,877,142 shares of the company's stock were exchanged, compared to its average volume of 2,401,085. The company has a market cap of $6.79 billion, a PE ratio of 9.53, a P/E/G ratio of 0.65 and a beta of 0.34. The firm has a 50-day moving average of $40.00 and a two-hundred day moving average of $35.72. H&R Block has a 12 month low of $28.16 and a 12 month high of $58.67.

H&R Block (NYSE:HRB - Get Free Report) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $2.38 earnings per share for the quarter, topping the consensus estimate of $2.21 by $0.17. H&R Block had a net margin of 18.90% and a negative return on equity of 211.62%. The firm had revenue of $1.14 billion during the quarter, compared to analysts' expectations of $1.12 billion. During the same quarter in the prior year, the company earned $2.27 EPS. The company's revenue was up 255.5% compared to the same quarter last year. H&R Block has set its FY 2027 guidance at 6.040-6.240 EPS. As a group, equities analysts expect that H&R Block will post 5.18 earnings per share for the current year.

Key Stories Impacting H&R Block

Here are the key news stories impacting H&R Block this week:

• Positive Sentiment: Q4 results exceeded expectations: H&R Block reported fiscal fourth-quarter adjusted EPS of $2.38, above the $2.21 analyst consensus, while revenue reached $1.14 billion versus estimates of $1.12 billion. EPS also increased from $2.27 in the year-ago quarter. H&R Block Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Optimistic fiscal 2027 outlook: Management forecast revenue of approximately $4.11 billion to $4.16 billion and adjusted EPS of $6.04 to $6.24, both above Wall Street expectations. The outlook supports the view that H&R Block can continue growing earnings while expanding its consultative, higher-value client model. H&R Block Fiscal 2027 Outlook
• Positive Sentiment: Shareholder returns improved: The board raised the quarterly dividend 9.5% to $0.46 per share, payable October 6 to shareholders of record September 3. The increase marks the company’s ninth consecutive annual dividend increase and implies a yield of roughly 3.9%, strengthening the stock’s income appeal. H&R Block Reports Fiscal 2026 Results
• Neutral Sentiment: Options activity signals increased speculation: Investors purchased 2,201 HRB call options, nearly three times typical volume. This may reflect bullish positioning following the earnings report, but options activity alone does not establish a fundamental change in the company’s value.
• Negative Sentiment: Execution risks remain: H&R Block plans to invest more in an AI-enabled expert model, client retention and higher-value customers. These initiatives could support longer-term growth, but the additional investment may pressure near-term margins if adoption or retention gains take longer than expected. H&R Block FY2027 Growth Priorities

H&R Block Company Profile

H&R Block NYSE: HRB is a leading provider of tax preparation services and software solutions, serving individual and small-business clients through a combination of retail offices, online platforms and mobile applications. The company offers assisted tax preparation at its network of retail offices, where clients work with trained tax professionals, as well as do-it-yourself (DIY) software and online filing services designed to guide users through the complexities of federal and state tax returns.

Founded in 1955 by brothers Henry W.

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