KANSAS CITY, Mo. - H&R Block, Inc. (NYSE:HRB), a global provider of tax preparation and financial services, has declared a quarterly cash dividend of $0.375 per share. The dividend is scheduled to be paid on January 6, 2025, to shareholders on record as of December 5, 2024. This continues the company's long-standing tradition of paying quarterly dividends, a practice it has maintained for over six decades since going public in 1962.
The announcement reflects H&R Block's consistent dividend growth over the years. Since April 2016, the dividend has increased by 88%, underscoring the company's commitment to returning value to its shareholders. In addition to dividends, H&R Block has returned more than $3.9 billion to shareholders through share repurchases.
H&R Block has built its reputation on providing expert tax services and financial products, including its mobile banking app Spruce. The company also supports small-business owners with a range of services through Block Advisors and Wave, including bookkeeping, payroll, advisory, and payment processing solutions.
The information regarding the dividend declaration is based on a press release statement from H&R Block.
In other recent news, H&R Block Inc. has reported significant increases in its fiscal year 2024 revenue, EBITDA, and earnings per share (EPS), attributed largely to substantial market share gains in its do-it-yourself (DIY) tax preparation business. The company also announced a 17% increase in its quarterly dividend and initiated a new share repurchase program valued at $1.5 billion. For fiscal year 2025, H&R Block projects revenue between $3.69 billion and $3.75 billion, EBITDA between $975 million and $1.02 billion, and EPS between $5.15 and $5.35.
H&R Block has extended its partnership with Pathward, N.A. through June 30, 2027, signifying the company's commitment to providing financial products through this collaboration. This extension is part of a Fourth Amendment to the Program Management Agreement between Emerald Financial Services, a wholly-owned subsidiary of H&R Block, and Pathward.
In terms of governance, the company's board has been reduced from nine to eight directors following the resignation of Yolande G. Piazza. The company confirmed that Piazza's departure did not result from any disagreements with the company's operations, policies, or practices.
Despite these positive developments, Goldman Sachs maintained its Sell rating on H&R Block shares, citing challenges such as the ongoing shift towards DIY tax solutions and increased competition. The firm also noted that persistent losses in the assisted market segment could contribute to a downward pressure on H&R Block's valuation.
InvestingPro Insights
H&R Block's recent dividend declaration aligns with its strong track record of shareholder returns, as highlighted by several key metrics from InvestingPro. The company has maintained dividend payments for an impressive 54 consecutive years, with the latest data showing a dividend yield of 2.46%. This consistency is further underscored by an InvestingPro Tip indicating that H&R Block has raised its dividend for 8 consecutive years.
The company's financial health appears robust, with a revenue of $3.61 billion in the last twelve months as of Q4 2024, representing a growth of 3.98%. This growth is complemented by a strong profitability profile, as evidenced by a gross profit margin of 44.84% and an operating income margin of 22.3% for the same period.
Investors may find H&R Block's valuation metrics particularly interesting. The company is trading at a P/E ratio of 14.87, which an InvestingPro Tip suggests is low relative to its near-term earnings growth. This could indicate potential value for investors, especially considering the company's strong return over the last five years, as noted in another InvestingPro Tip.
For those interested in a deeper dive into H&R Block's financial health and market position, InvestingPro offers additional insights with 9 more tips available, providing a comprehensive view of the company's prospects.
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