H&R Block, Inc. to Issue Quarterly Dividend of $0.42 (NYSE:HRB)

Key Points

• Quarterly dividend of $0.42 per share was declared (annualized $1.68) with record/ex‑dividend date on June 3 and payment on July 7, implying a yield of about 5.4%.
• The dividend appears sustainable — H&R Block has raised payouts for nine straight years and carries a payout ratio around 32.6%, while analysts forecast roughly $5.35 EPS next year.
• Shares trade near $31.10 (12‑month range $28.16–$64.62) with a P/E of 7.18 and $3.94B market cap; Wall Street consensus is a “Hold” with a $41 price target amid mixed analyst ratings.

H&R Block, Inc. (NYSE:HRB - Get Free Report) declared a quarterly dividend on Monday, May 4th. Shareholders of record on Wednesday, June 3rd will be paid a dividend of 0.42 per share on Tuesday, July 7th. This represents a c) dividend on an annualized basis and a yield of 5.4%. The ex-dividend date of this dividend is Wednesday, June 3rd.

H&R Block has raised its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 9 years. H&R Block has a payout ratio of 32.6% meaning its dividend is sufficiently covered by earnings. Analysts expect H&R Block to earn $5.35 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 31.4%.

H&R Block Trading Down 0.5%

Shares of H&R Block stock opened at $31.10 on Tuesday. H&R Block has a 12-month low of $28.16 and a 12-month high of $64.62. The firm has a market capitalization of $3.94 billion, a price-to-earnings ratio of 7.18, a PEG ratio of 0.50 and a beta of 0.29. The firm's 50 day simple moving average is $31.18 and its two-hundred day simple moving average is $38.76.

H&R Block (NYSE:HRB - Get Free Report) last issued its quarterly earnings results on Tuesday, February 3rd. The company reported ($1.84) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.96) by $0.12. The business had revenue of $198.87 million for the quarter, compared to analyst estimates of $187.36 million. H&R Block had a net margin of 16.19% and a negative return on equity of 176.02%. H&R Block's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the prior year, the business posted ($1.73) EPS. On average, sell-side analysts predict that H&R Block will post 4.98 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on HRB shares. The Goldman Sachs Group cut their price objective on shares of H&R Block from $48.00 to $32.00 and set a "sell" rating on the stock in a research note on Friday, February 6th. Barrington Research reiterated an "outperform" rating and issued a $50.00 price objective on shares of H&R Block in a research note on Monday, April 27th. Finally, Weiss Ratings upgraded shares of H&R Block from a "sell (d+)" rating to a "hold (c)" rating in a research note on Tuesday, February 17th. One research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $41.00.

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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