How To Earn $500 A Month From H&R Block Stock Ahead Of Q3 Earnings Report

Zinger Key Points
  • A more conservative goal of $100 monthly dividend income would require owning 938 shares of H&R Block.
  • H&R Block offers an annual dividend yield of 2.64%, which is a quarterly dividend amount of 32 cents per share ($1.28 a year).

H&R Block, Inc. HRB will release earnings results for its third quarter, after the closing bell on May 9.

Analysts expect the Kansas City, Missouri-based company to report quarterly earnings at $4.62 per share, up from $4.2 per share in the year-ago period. H&R Block’s projected revenue is $2.14 billion, compared to $68.91 billion a year earlier, according to data from Benzinga Pro.

On May 7, H&R Block, declared a quarterly cash dividend of 32 cents per share. Barrington Research analyst Alexander Paris maintained H&R Block with an Outperform rating and a $55 price target on May 1.

With the recent buzz around H&R Block, some investors may be eyeing potential gains from the company's dividends, too. As of now, H&R Block offers an annual dividend yield of 2.64%, which is a quarterly dividend amount of 32 cents per share ($1.28 a year).

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $227,509 or around 4,688 shares. For a more modest $100 per month or $1,200 per year, you would need $45,521 or around 938 shares.

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To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($1.28 in this case). So, $6,000 / $1.28 = 4,688 ($500 per month), and $1,200 / $1.28 = 938 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as the dividend payment and the stock price fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in the dividend payment can impact the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

HRB Price Action: Shares of H&R Block fell 1.6% to close at $48.53 on Wednesday.

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