How To Earn $500 A Month From H&R Block Stock Ahead Of Q4 Earnings Report

H&R Block, Inc. HRB is set to release earnings results for its fourth quarter, after the closing bell on Thursday, Aug. 15.

Analysts expect the Kansas City, Missouri-based tax preparation firm to report quarterly earnings at $1.74 per share, down from $2.05 per share in the year-ago period. H&R Block projects to report quarterly revenue of $1.03 billion for the quarter, compared to $1.03 billion a year earlier, according to data from Benzinga Pro.

With the recent buzz around H&R Block, some investors may be eyeing potential gains from the company's dividends, too. The company offers an annual dividend yield of 2.25%. That’s 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?

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To earn $500 per month or $6,000 annually from dividends alone, you would need an investment of approximately $266,841 or around 4,688 shares. For a more modest $100 per month or $1,200 per year, you would need $53,391 or around 938 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($9.00 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 both 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 rose 0.9% to close at $56.92 on Wednesday.

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