H&R Block Inc is known by the trading ticker symbol, HRB. It is listed in the consumer cyclical sector as a personal services company. This is my first report on H&R Block Inc for my Vista stock portfolio. It has been mentioned before for other portfolios.

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 U.S.-assisted tax preparation fees. Revenue from franchise and product royalties and digital do-it-yourself tax solutions is also significant.

Image Source: Pixabay

H&R Block, Inc. was founded in 1955 and is headquartered in Kansas City, Missouri.

Three key data points gauge dividend equities or funds like H&R Block Inc:

(1) Price

(2) Dividends

(3) Returns

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

HRB Price

H&R Block's price per share was $25.46 as of yesterday's market close. One year ago its price was $14.87. So HRB share price has increased just over 71.2% in the past year. 

If H&R Block's stock trades in the range of $14.00 to $28.00 this next year, its recent $25.46 price might rise by $1.14 to reach $26.60 by August 25, 2022. My estimate is $0.03 over the average annual price upside for the past 10 years.

HRB Dividends

H&R Block's most recent regular quarterly dividend payout of  $0.27 was paid July 1st. Their annual estimated forward-looking payout of $1.06 yields 4.24% based on yesterday's $25.46 closing price. H&R Block has paid increasing quarterly dividends for 35 years.

HRB Returns

Adding the $1.06 annual HRB forward-looking dividend to my $1.14 price upside estimate shows a $2.20 potential gross gain, per share, to be reduced by any costs to trade HRB shares.  

At yesterday's $25.46 price per share, a little under $1000 would buy 39 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.26 per share.

Subtract that maybe $0.26 brokerage cost from my estimated $2.20 gross gain per share results in a net gain of $1.94 X 39 shares = $75.66 for a 7.57% net gain on a $992.94 investment.

So it is that H&R Block Inc shows a possible 7.57% net gain including a 4.24% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in H&R Block Inc could generate $42.40 in cash dividends alone. And a single share bought at yesterday's closing price was $25.46! Thus, the HRB share price is 40% under the dividend income from $1K invested. So, according to my dogcatcher ideal, now is the time to pick up HRB  shares. The dividend from $1k invested is 60% above the single share price. Consider yourself alerted. 

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