H&R Block, Inc. (NYSE:HRB) Raises Dividend to $0.42 Per Share

Key Points

• H&R Block, Inc. has announced a quarterly dividend increase of $0.42 per share, up from the previous dividend of $0.38, representing a 12.0% hike.
• The dividend yield is now at 3.3%, with a payout ratio of 29.1%, indicating the dividend is well-covered by earnings.
• In recent trading, H&R Block's stock price dropped to $51.49, with trading volume significantly exceeding the average.

H&R Block, Inc. (NYSE:HRB - Get Free Report) declared a quarterly dividend on Tuesday, August 12th, RTT News reports. Stockholders of record on Thursday, September 4th will be given a dividend of 0.42 per share on Monday, October 6th. This represents a c) annualized dividend and a dividend yield of 3.3%. The ex-dividend date of this dividend is Thursday, September 4th. This is a 12.0% increase from H&R Block's previous quarterly dividend of $0.38.

H&R Block has a payout ratio of 29.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect H&R Block to earn $5.10 per share next year, which means the company should continue to be able to cover its $1.50 annual dividend with an expected future payout ratio of 29.4%.

H&R Block Stock Performance

Shares of NYSE HRB traded up $0.78 during mid-day trading on Friday, hitting $50.15. The company had a trading volume of 2,422,271 shares, compared to its average volume of 1,592,710. The stock has a market cap of $6.71 billion, a price-to-earnings ratio of 11.22, a PEG ratio of 0.81 and a beta of 0.24. The firm's 50 day simple moving average is $54.94 and its two-hundred day simple moving average is $55.69. The company has a debt-to-equity ratio of 12.86, a current ratio of 0.90 and a quick ratio of 0.78. H&R Block has a 12 month low of $47.00 and a 12 month high of $68.45.

H&R Block (NYSE:HRB - Get Free Report) last posted its earnings results on Tuesday, August 12th. The company reported $2.27 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $2.81 by ($0.54). H&R Block had a net margin of 16.11% and a negative return on equity of 191.38%. The firm had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.07 billion. During the same period in the previous year, the firm earned $1.89 earnings per share. The company's revenue for the quarter was up 4.6% on a year-over-year basis. As a group, equities research analysts forecast that H&R Block will post 5.25 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the company. Northcoast Research cut H&R Block from a "buy" rating to a "neutral" rating in a research note on Friday, May 2nd. The Goldman Sachs Group lowered their target price on shares of H&R Block from $54.00 to $48.00 and set a "sell" rating on the stock in a research note on Wednesday. Barrington Research reduced their price target on shares of H&R Block from $70.00 to $62.00 and set an "outperform" rating for the company in a research note on Wednesday. Finally, Wall Street Zen upgraded H&R Block from a "hold" rating to a "buy" rating in a research report on Friday, May 9th.

H&R Block Company Profile

H&R Block, Inc engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.