H&R Block, known by the ticker symbol HRB,  is a mid cap personal services company, operating in the consumer cyclical business sector. This is my second report on HRB for this Viital stock portfolio. I last reviewed it on November 26th.

H&R Block Inc provides income tax return preparation services, digital do-it-yourself tax solutions, and other services related to income tax preparation to the general public primarily in the United States, Canada, and Australia.

The company mainly prepares tax returns for customers within the United States through its company-owned offices, franchise locations, and online tax software. The vast majority of H&R Block's offices are located in the U.S. The company derives most of its total revenue from the U.S. assisted tax preparation fees. 

Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also relatively significant.

Further, it offers small business financial solutions through its company-owned or franchise offices, and online. 

The company was founded in 1955 and is headquartered in Kansas City, Missouri.

Three key data points gauge any dividend equity or fund such as H&R Block Inc (HRB):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

Photo by Kelly Sikkema on Unsplash

HRB Price

H&R Block's price per share was $23.16 as of Yesterday's market close. One year ago its price was $18.54. Therefore HRB's share price rose $4.62 or just about 25% in the past year.

If HRB's stock trades in the range of $16.00 to $28.00 this next year, its recent $23.16 share price might rise by $2.84 to reach $26.00  by February 2, 2023. This estimate is $0.25 over the median of 4 analysts one-year upside target estimates for their brokerages.

HRB Dividends

H&R Block Inc 's most recent quarterly dividend of $0.27 was paid to shareholders January 3rd, to those on record as of December 3rd. The HRB estimated Annual dividend payout per share of $1.08 yields 4.66% per yesterday's $23.16. closing price. 

HRB has paid  quarterly dividend payouts increasing annually since January ,1986. That stretch marked 36 years  last month.

HRB Returns

Adding the $1.08 annual estimated HRB forward-looking dividend to its estimated one-year share price upside of $2.84 shows a $3.92 potential gross gain, per share, to be reduced by any costs to trade HRB shares.  

At Monday's $23.16 price per share, a little under $1000 would buy 43 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.23 per share.

Subtract that maybe $0.23 brokerage cost from my estimated $3.92 gross gain estimate per share results in a net gain of $3.69 X 43 shares = $158.67 for a 15.87% net gain on a $995.88 investment.

So it is that H&R Block Inc (HRB) shows a possible 15.87% net gain including a 4.66% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in H&R Block Inc (HRB) could generate $46.60 in cash dividends alone. Note that a single share of HRB stock bought at yesterday's share price of $23.16 is $23.44 below the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pickup H&R Block Inc (HRB) shares. The estimated next-year dividend from $1K invested is over two times more than HRB's single share price. Consider yourself alerted. Its a sign!  

All of the estimates above are speculation based on the past history of H&R Block Inc (HRB). Only time and money invested in this stock will determine its market value.