HRB (H&R Block)

Whenever I happen to notice a stock price of 25.64, I get an urge to sing that Chicago song.
HRB hit that price this morning when I happened to be looking.

https://www.youtube.com/watch?v=iUAYeN3Rp2E

HRB has a history of raising dividends, though not every year. Nice yield of 4.2% and earnings yield around 11-12% for the next couple of years. Earnings are lumpy. Seems like a pretty good conservative company to own. I’ve owned it since the beginning of this year, though sold off a little as the price has gone up. If it comes back down a little further, maybe time to add back to the position.

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Last time I looked at the HRB 10K (years ago) I was surprised to learn most assets are in bonds. It resembles a bond fund.

I presume this is because they want their accounting ratios to look like those of a manufacturing company that owns physical assets like plants, equipment, and inventories.

Not H&R Block. Most space is leased. They own some software and maybe little else.

Its an unusual company mathematically. They are clearly a service company. Book value is bonds.

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Well that one worked out pretty well, anyway.
One of the few stocks hitting a 52-week high today around $30.
Earnings were well-received.

I think you expect tax quarter to give best income. Some business for estimated taxes year round but many offices close or are by appointment summer quarter. Business picks up beginning about November.

I think you would be surprised to see new highs through summer months. Maybe even quarterly losses.

I think you would be surprised to see new highs through summer months. Maybe even quarterly losses.

I’ve been surprised by how much it has bounced back in a very short time. Closed below $24 on the 10th and now nearly $32 on the 13th for something around 30% in 3 days. So, I’ve been trimming a bit the last couple of days. Earnings yield of around 10 both trailing and forward still doesn’t sound bad though, so I’m continuing to hold some. Dividend yield of around 3.5% still. No dividend increase this year. Maybe next year.

In general they lose money in the quarters ending in September and December and make money in the March and June quarters. As expected most of their revenues come during tax season and they have expenses that run year-round. People who don’t like lumpy earnings may be disturbed by that. It doesn’t bother me.