H&R Block has historically been a great example of a predictable, dependable business. This past year, however, shareholders really seem to have gotten a case of “the sky is falling” syndrome. Shares have lost close to 50% over the prior year and have then pretty much regained all those losses, despite the underlying business performing as it always has.
H&R Block has delivered a 70% total return in five months but is still at a reasonable 9x P/E. I maintain a more cautious 'buy' rating on HRB, given its double-digit EPS growth and undemanding forward multiple. Recent quarterly results erased AI concerns, with HRB posting revenue, EPS, and guidance beats; Q4 EPS reached $5.31.
In this article series, I summarize dividend announcements of the past week. This week, 12 stocks announced dividend increases, while one announced a 52% dividend cut. BMI stands out with a 10% dividend increase, an excellent quality score of 8.04, a very safe dividend, and a valuation with 11.97% upside. CBOE leads dividend hikes with a 19.44% increase, a top-quality score of 8.64, and robust dividend safety metrics.
A weekly summary of dividend activity for Dividend Champions, Contenders, and Challengers. Companies which changed their dividends. Companies with upcoming ex-dividend dates.
H&R Block remains a compelling 'Buy,' with strong fundamentals, robust cash flow, and consistent operational execution despite a 73% rally since April. Q4 saw revenue of $1.15 billion (+3.6% y/y), EBITDA margin improvement to 26.8%, and adjusted EPS of $5.31 (+14% y/y), all exceeding consensus. Management's FY27 guidance implies further margin expansion and higher-quality revenue, targeting higher-income households for sustained profitability.