H&R Block said on February 1, 2023 that its board of directors declared a regular quarterly dividend of $0.29 per share ($1.16 annualized). Shareholders of record as of March 6, 2023 will receive the payment on April 5, 2023. Previously, the company paid $0.29 per share.
At the current share price of $39.33 / share, the stock’s dividend yield is 2.95%. Looking back five years and taking a sample every week, the average dividend yield has been 4.44%, the lowest has been 2.49%, and the highest has been 8.40%. The standard deviation of yields is 1.22 (n=236).
The current dividend yield is 1.23 standard deviations below the historical average.
Additionally, the company’s dividend payout ratio is 0.34. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.12%, demonstrating that it has increased its dividend over time.
Analyst Price Forecast Suggests 0.50% Upside
As of February 4, 2023, the average one-year price target for Block is $39.52. The forecasts range from a low of $25.25 to a high of $55.65. The average price target represents an increase of 0.50% from its latest reported closing price of $39.33.
The projected annual revenue for Block is $3,571MM, an increase of 3.49%. The projected annual EPS is $3.83, an increase of 17.27%.
Fund Sentiment
There are 1001 funds or institutions reporting positions in Block. This is an increase of 47 owner(s) or 4.93%.
Average portfolio weight of all funds dedicated to US:HRB is 0.2451%, a decrease of 1.8061%. Total shares owned by institutions increased in the last three months by 0.40% to 155,493K shares.
What are large shareholders doing?
Wellington Management Group Llp holds 8,409,083 shares representing 5.41% ownership of the company. In it’s prior filing, the firm reported owning 4,480,921 shares, representing an increase of 46.71%. The firm increased its portfolio allocation in HRB by 139.05% over the last quarter.
VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,758,939 shares representing 3.06% ownership of the company. In it’s prior filing, the firm reported owning 4,687,203 shares, representing an increase of 1.51%. The firm increased its portfolio allocation in HRB by 27.47% over the last quarter.
IJH – iShares Core S&P Mid-Cap ETF holds 4,663,685 shares representing 3.00% ownership of the company. In it’s prior filing, the firm reported owning 4,589,043 shares, representing an increase of 1.60%. The firm increased its portfolio allocation in HRB by 23.01% over the last quarter.
DVY – iShares Select Dividend ETF holds 4,332,550 shares representing 2.79% ownership of the company. In it’s prior filing, the firm reported owning 4,255,258 shares, representing an increase of 1.78%. The firm increased its portfolio allocation in HRB by 6.25% over the last quarter.
NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 4,061,065 shares representing 2.61% ownership of the company. In it’s prior filing, the firm reported owning 4,026,571 shares, representing an increase of 0.85%. The firm increased its portfolio allocation in HRB by 26.67% over the last quarter.
H&R Block Background Information
(This description is provided by the company.)
H&R Block, Inc. provides help and inspires confidence in its clients and communities everywhere through global tax preparation, financial products, and small business solutions. The company blends digital innovation with the human expertise and care of its associates and franchisees as it helps people get the best outcome at tax time, and better manage and access their money year-round. Through Block Advisors and Wave, the company helps small business owners thrive with innovative products like Wave Money, a small business banking and bookkeeping solution, and the only business bank account to manage bookkeeping automatically.
This article originally appeared on Fintel
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