Why H&R Block Stock Jumped This Week

Shares of H&R Block (NYSE: HRB) rose more than 16% this past week after the tax preparation leader boosted its cash payments to investors.

Gobbling up its own shares

H&R Block's revenue rose 4.9% year over year to $3.95 billion in its fiscal year ended June 30. The financial services purveyor's adjusted net income from continuing operations, in turn, climbed 6.9% to $688 million.

"Research tells us that clients with more complex financial lives value assistance, expertise, and trusted advice," CEO Curtis Campbell said during a conference call with analysts. "This is exactly where H&R Block stands apart."

Yet it's H&R Block's per-share profit metrics that perhaps best highlight the benefits of its excellent cash generation capabilities.

The tax and small-business solutions provider used its strong free cash flow to repurchase nearly 8% of its outstanding shares at an average price of $47.48 per share in fiscal 2026. Going back to 2016, H&R Block has bought back a whopping 48% of its shares.

All told, the company's adjusted earnings per share from continuing operations jumped 13.9% to $5.31.

Investors can expect steadily growing cash payouts

Looking ahead to fiscal 2027, management guided for revenue of more than $4.1 billion and adjusted earnings per share of $6.04 to $6.24.

This healthy profitability enabled H&R Block to raise its quarterly dividend by 10% to $0.46 per share, marking its ninth straight annual increase. The income-paying stalwart has not missed a quarterly dividend payment since it became a public company way back in 1962.

"Entering fiscal 2027, we are well positioned to build on this momentum and continue delivering meaningful long-term value," chief financial officer Tiffany Mason said.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.