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Tax Time, All the Time: This Stock’s Reliable Dividend Adds Up

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If you’re an investor drawn to companies known for rewarding shareholders year after year — even when their busiest months are behind them - H&R Block Inc (NYSE: HRB) deserves your attention.

With a loyal customer base, steady cash flow, and a dividend that’s quietly climbed higher every year for the last 10 years, it’s the personification of reliability over excitement.

In a world chasing the next big growth story or wonder-tech discovery, this company stays grounded in something everyone needs: expert help navigating taxes and finances. It's not glamorous, but it is dependable.

From walk-in offices across the U.S. to its increasingly popular digital platform, H&R Block is evolving to meet modern expectations while staying true to its core mission: making tax time less painful for millions of people.

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A resilient, future-looking business in a traditional industry

Founded in 1955 in Kansas City, Missouri, H&R Block has grown from a seasonal tax-preparation business into a diversified financial services platform with customers across the United States, Canada, and Australia.

Its services are in such high demand that its 4,200 full-time employees swell to 70,900 during tax season.

The company’s long-standing brand and trusted network of tax experts give it a durable moat in an otherwise commoditised industry. 

Recent results underscore that resilience. While tax season still drives the lion’s share of revenue, digital products, small business services, and the company’s Wave financial platform have also become steady contributors.

Management continues to push tech-enabled growth, combining its brick-and-mortar footprint with a growing digital ecosystem that appeals to both individuals and small businesses.

Operationally, margins remain healthy thanks to disciplined cost control and consistent client retention.

With strong free cash flow generation and minimal long-term debt, the company has ample capacity to continue rewarding shareholders.

Action: Treat HRB as a steady cash-flow play, a stock that’s not the flashiest in your portfolio but is right up there in terms of reliability.

Ideal if you’re looking for a dependable income from a business that’s proven it can thrive beyond its traditional peak season.

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Slow and steady dividend growth

H&B Block has a strong track record of dividend payments.

Since 2016, it has returned ~$4.5B to shareholders. The dividend amount has also grown by x2 in that same timeframe. 

H&R Block currently pays a quarterly dividend of $0.42 per share, yielding 3.21%, comfortably above the consumer services average of 1.89%.

The company has raised its dividend for ten consecutive years. Consistent earnings and conservative payout ratios back this solid streak.

Management also supplements dividends with regular share buybacks, showing a strong commitment to returning capital to investors.

Action: HRB offers a nice blend of stability and shareholder-friendly management. It’s not the highest yielder on the board, but its sustainability is key.

Patience pays here. H&R Block tends to fly under the radar outside of tax season, which is precisely when you should be paying attention.

The best opportunities usually appear in the quieter months, when revenue headlines fade and the market forgets how steady this business really is.

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Be mindful of a seasonal concentration

The obvious seasonal concentration means earnings are heavily weighted toward tax season.

Any disruption, whether from IRS policy changes, economic slowdowns, or increased competition from digital-only platforms like TurboTax, could pressure short-term revenue.

Another thing to keep in mind before taking the plunge is that management’s tech push is promising, scaling Wave and other digital products takes time and sustained investment.

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The bottom line

H&R Block checks all the right boxes: brand strength, stable cash flow, a growing digital arm, and consistent shareholder returns.

The dividend may not blow you away with yield, but it makes up for it with reliability and growth potential.

Action: Buy and hold for steady income and moderate long-term appreciation. This is one for your portfolio’s “dependable earners” column.

It’s the kind of stock you own for quiet consistency, not drama. Tuck it away and wait for the cheques to roll in.

That’s all for today’s edition of the Dividend Brief.

Thanks for reading, and if you have any feedback or dividend stocks you want me to take a look at, just reply to this email!

—Noah Zelvis
DividendBrief.com