H&R Block Boosts Dividend to $0.42 Per Share

H&R Block's Board of Directors has increased the quarterly dividend by 12%, marking eight consecutive annual increases. The new dividend is $0.42 per share, payable on October 6, 2025 to shareholders of record as of September 4, 2025.

H&R Block, Inc. (NYSE: HRB) has once again increased its quarterly dividend, marking the eighth consecutive year of dividend hikes. The board of directors announced a 12% increase, bringing the new dividend to $0.42 per share. This dividend will be payable on October 6, 2025, to shareholders of record as of September 4, 2025.

The dividend increase comes on the heels of strong financial performance during the fiscal year 2025. The company reported a 4% increase in delivered revenue, reaching $3.8 billion, and a 7% growth in earnings per share (EPS), with adjusted EPS rising to $4.66. The company also returned $600 million to shareholders through dividends and share repurchases, which included the retirement of approximately 6.5 million shares.

H&R Block's dividend growth is a testament to its consistent profitability and strong cash flow. The company has maintained a disciplined capital allocation strategy, focusing on both shareholder rewards and strategic investments. This approach has allowed H&R Block to maintain a robust dividend policy, which is a significant draw for income-oriented investors.

However, despite the strong dividend performance, Wall Street analysts have maintained a 'hold' rating for H&R Block, with a 12% potential upside to the $62 median 12-month price target. This rating suggests that while the company's performance is solid, investors are cautious about its long-term prospects, potentially due to competition and evolving customer preferences.

Looking ahead, H&R Block expects revenue to be in the range of $3.875 to $3.895 billion for fiscal year 2026, with adjusted EPS forecasted between $4.85 and $5.00. The company also expects to maintain its disciplined capital allocation strategy, continuing to deliver meaningful value to shareholders.

In conclusion, H&R Block's dividend increase is a positive sign of the company's financial health and commitment to shareholder rewards. However, investors should continue to monitor the company's performance and the broader market conditions to make informed investment decisions.

References:
[1] https://finimize.com/content/hr-block-raises-its-dividend-once-again-as-profits-climb
[2] https://investors.hrblock.com/news-releases/news-release-details/hr-block-reports-fiscal-2025-results-and-provides-fiscal-2026