H&R Block (HRB) rose about 16% on Wednesday, Aug. 12, after reporting fiscal 2026 fourth-quarter results that beat Wall Street expectations. Adjusted EPS came in at $2.38, above the $2.21 consensus estimate, while revenue increased to $1.14 billion from $1.11 billion a year earlier. H&R Block also issued fiscal 2027 guidance that exceeded analysts' expectations.
The company raised its quarterly dividend by 10% to $0.46 per share, extending its streak of annual dividend increases to nine years. H&R Block previously declared a $0.42 quarterly dividend in February 2026. Get exclusive insights with the FREE Barchart Brief newsletter.
Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Since 2016, the company says it has raised its dividend by 110% and returned more than $5 billion to shareholders through dividends and stock buybacks. The rally also pushed H&R Block to a new 52-week high.
H&R Block has long been seen as a seasonal tax-preparation stock. But with its latest earnings, stronger guidance, and higher dividend, could the stock offer more than just a tax-season trade? H&R Block makes money through its company-owned and franchised tax offices, do-it-yourself tax software, and its Wave platform for small businesses.
The stock is up 8% over the past 52 weeks and 23% so far this year. Despite that gain, H&R Block still trades at 8.12x forward earnings, about half the 16.22x average for the consumer discretionary sector. H&R Block also raised its quarterly dividend by 10% to $0.46 per share.
The dividend will be paid on Oct. 6 to shareholders of record on Sept. 3. It is the company's ninth straight annual dividend increase and brings the annual payout to $1.84 per share. Before the increase, H&R Block paid $0.42 each quarter, or $1.68 annually, for a 3.10% yield.
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