H&R Block Shares Plunge as HSBC Nixes Tax Refund Loan Agreement (HRB, HBC)

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Tax prep specialist H&R Block, Inc. ( HRB ) on Monday saw its shares plunge in premarket trading, following an announcement by banker HSBC ( HBC ) that it has terminated the parties' long-term tax return contract.

Under the now-defunct deal, HSBC had provided all of H&R Block's tax refund anticipation loans and a portion of its refund anticipation checks. HSBC will no longer provide those checks and loans to HRB clients.

HSBC said the move comes amid regulatory moves by the Office of the Comptroller of the Currency.


H&R Block shares plunged 99 cents, or -8%, in premarket trading Monday.

The Bottom Line
Shares of H&R Block ( HRB ) have a 4.73% dividend yield, based on Friday's closing stock price of $12.69. The stock has technical support in the $10 price area. If the shares can firm up, we see overhead resistance around the $14-$15 price levels.

H&R Block, Inc. ( HRB ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: HBC , HRB

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