H&R Block, Inc. (HRB) is gearing up to announce its fourth-quarter earnings results after the market closes on Thursday, August 15th. Analysts predict a decline in earnings per share, with an estimated $1.74 per share compared to $2.05 in the same period last year. However, despite the anticipated earnings dip, H&R Block’s attractive dividend yield is attracting investor attention. The company boasts a 2.25% annual dividend yield, translating to a quarterly dividend of 32 cents per share, totaling $1.28 annually.
For investors seeking a consistent stream of income, H&R Block’s dividend presents a compelling opportunity. To achieve a monthly dividend income of $500, or $6,000 annually, an investment of approximately $266,841 or 4,688 shares would be needed. For a more modest monthly income of $100, or $1,200 annually, a smaller investment of $53,391 or 938 shares is required.
The calculation is simple: divide the desired annual income by the annual dividend payment. For example, $6,000 / $1.28 = 4,688 shares for a $500 monthly dividend. However, it’s important to note that dividend yield can fluctuate over time, influenced by changes in the dividend payment and the stock price.
The dividend yield is calculated by dividing the annual dividend payment by the stock’s current price. For instance, if a stock pays an annual dividend of $2 and its current price is $50, the dividend yield is 4% ($2/$50). If the stock price increases to $60, the yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the yield rises to 5% ($2/$40).
Similarly, changes in the dividend payment can impact the yield. An increase in the dividend payment will lead to a higher yield, assuming the stock price remains constant. Conversely, a decrease in the dividend payment will result in a lower yield.
H&R Block’s shares closed at $56.92 on Wednesday, marking a 0.9% increase. As investors anticipate the upcoming earnings announcement, the dividend yield remains a key factor to consider for those seeking regular income streams.
