H & R Block Beats, Sweetens Deal With Hefty Dividend Increase: Here's How To Earn $500 A Month From The Stock

H & R Block Inc HRB shares gained as much as 11% on Wednesday after the tax preparer issued upbeat second-quarter earnings. The company also hiked its dividend by a generous 10%.

Here's what investors need to know about the print, and how to earn $500 per month from the stock.

Earnings By The Numbers: The Kansas City, Missouri-based company issued earnings of $2.05 per share, ahead of the $1.89 expectation, on revenues of $1.032 billion which beat the $1.013 billion estimate, according to Benzinga Pro.

The company reported a strong conclusion to the fiscal year, highlighting revenue growth, substantial EBITDA growth, and a 9% increase in adjusted EPS amidst challenging conditions.

Positive customer feedback, growth in its Small Business sector, and efficient implementation of the “Block Horizons” strategy also contributed to the year’s accomplishments, CEO Jeff Jones said.

CFO Tony Bowen also said it increased dividends by 10%. Still, earning $500 per month through its dividends would take a heft investment — roughly 4,712 shares, or $181,818.

If you're aiming for a more modest amount, say $100 per month, you'd have to buy 942 shares, which would be about $36,365.

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

The dividend yield is calculated by dividing the annual dividend payment by the current stock price. As the stock price changes, the dividend yield will also change.

If a stock pays an annual dividend of $2 and its current price is $50, its dividend yield would be 4%. However, if the stock price increases to $60, the dividend yield would decrease to 3.33% ($2/$60).

Conversely, if the stock price decreases to $40, the dividend yield would increase to 5% ($2/$40).

The dividend payment itself can also change over time, which can also impact the dividend yield. If a company increases its dividend payment, the dividend yield will increase even if the stock price remains the same. Similarly, if a company decreases its dividend payment, the dividend yield will decrease.

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