Updated 3/13/25
Robert Half Inc. is a name that’s been around the block. Best known for staffing and consulting through its Robert Half and Protiviti brands, this company has long helped businesses fill roles in finance, tech, and administrative functions. It’s been a steady presence in a sometimes chaotic industry.
But lately, the tide’s been a bit rough. Shares are down nearly 30% over the past year as slower hiring and economic uncertainty have weighed on demand. Still, for dividend investors looking beyond price action and into the core of what a business offers, there’s a lot to unpack—and possibly, a lot to like.
Recent Events
The past 12 months have been anything but smooth for Robert Half. Hiring has cooled, revenue has taken a hit, and earnings have come in noticeably lighter. In its latest quarterly report, revenue slipped by 6% compared to last year, and earnings fell off by nearly 38%. That’s not a small miss.
Even so, what stood out wasn’t the drop in performance—it was the company’s decision to keep the dividend train running. While others might pull back or pause, Robert Half raised its dividend again. It’s a small but telling move that points to management’s long-term mindset.
Key Dividend Metrics
📈 Dividend Yield: 4.30%
💵 Annual Dividend: $2.36 per share
🧮 Payout Ratio: 86.89%
📊 5-Year Average Yield: 2.29%
⏱️ Years of Consecutive Growth: 20
📅 Next Payment: March 14, 2025
🛡️ Dividend Safety: Cautiously stable
Dividend Overview
Right now, Robert Half is offering a forward dividend yield of 4.3%. That’s well above its five-year average, and the main reason is the drop in stock price. When yields pop this high, it’s often a reflection of market pessimism, but for income investors, that pessimism can sometimes create opportunity.
The company has paid dividends every year since the ‘80s. It’s not the flashiest payer, but it’s been remarkably steady. Its most recent dividend hike in the face of weaker earnings suggests leadership sees beyond the current downturn.
Dividend Growth and Safety
Now, let’s talk risk. An 87% payout ratio on earnings is high—no way around it. But before raising a red flag, it’s worth looking at cash flows. Robert Half pulled in over $410 million in operating cash flow last year and generated $287 million in free cash after necessary investments. That easily covers the dividend obligations.
What gives the dividend an extra layer of safety is the company’s balance sheet. There’s more than $537 million in cash, while debt is relatively modest at $233 million. Not many firms today can say they’re sitting on a net cash position.
So, even if earnings stay weak, the dividend is backed by solid free cash and a conservative financial approach. It’s not untouchable, but there’s a clear buffer.
Chart Analysis
Market Cycle Stage
Looking at the chart for Robert Half (RHI), we’re clearly deep into the markdown phase of the Wyckoff cycle. The prior distribution phase played out between November and January when price remained choppy and volume was fading. The 50-day moving average crossed above the 200-day briefly in late October, triggering a short-lived rally, but this quickly turned out to be a bull trap. What followed was a sharp selloff, confirming the end of that temporary markup.
Since mid-January, the stock has been in a consistent decline, with lower highs and lower lows, and volume has picked up on down days—classic signs of markdown. The most recent price action has the stock closing at 53.06, sitting close to its 52-week low. This puts it squarely into potential Phase D or early Phase E of Wyckoff’s markdown.
Moving Averages
The moving averages tell a straightforward story. The 50-day is now sharply sloped downward and has crossed below the 200-day, forming a death cross back in early February. This crossover is a technical red flag, signaling a strong bearish trend in place. The gap between the two averages continues to widen, which suggests there’s no imminent trend reversal yet. Both moving averages are now acting as resistance levels.
Price Action and Volume
From a volume standpoint, there’s no significant accumulation visible. Volume has been relatively muted outside of a few spikes, mostly on down days. That lack of institutional buying interest shows that the smart money likely hasn’t stepped in just yet. The price structure has been cleanly respecting a downward trajectory with no real base forming—a sign that we’re not yet in an accumulation phase.
The recent candles tell us a lot. Over the last five sessions, the candles are mostly bearish with lower closes. There are long upper wicks on a few of them, which signals intraday selling pressure as attempts to rally were quickly sold into. Buyers appear tentative and outnumbered by consistent sellers. None of these candles suggest exhaustion from sellers just yet.
Relative Strength Index (RSI)
RSI has been trending below 30 for a while now and currently sits in deeply oversold territory. While this would usually trigger some interest in a short-term bounce, the lack of price stabilization suggests the oversold condition might persist. This kind of persistent weakness is more typical in a strong markdown cycle rather than just a temporary correction.
Support and Resistance
There’s minor support near 52.50, which lines up with the recent intraday low. If that level gives way with volume, the next support doesn’t come in until the upper 40s based on prior price history. On the upside, resistance is layered. The 50-day moving average near 60 and the 200-day closer to 65 will both act as significant ceilings in the event of a reversal attempt.
The chart structure shows no confirmed signs of a bottom. With price trending lower and volume not showing a shift in character, we remain in the markdown phase. Any reversal will need to start with tighter price consolidation and clearer signs of demand stepping in.
Analyst Ratings
📈 Robert Half Inc. (RHI) has recently seen some shifts in analyst sentiment, reflecting growing attention on where the company stands in the current labor market environment.
🟢 Back in January 2025, one major firm revised its outlook on RHI, moving the rating from “Underweight” to “Equal Weight” and lifting the price target from $60 to $80. The analysts cited improving signals within the staffing sector and the potential for stabilization in hiring trends as key reasons behind the upgrade. While not overly bullish, the move indicated a more neutral stance after a long period of pessimism.
🔻 On the flip side, in December 2024, another investment house downgraded RHI from “Buy” to “Sell,” lowering the price target to $64. The downgrade came on the heels of disappointing revenue trends and a more cautious view on the near-term outlook for staffing demand. They pointed to weakening client activity and concerns about profitability in a tighter job market as the primary drivers behind the downgrade.
💬 As of late March 2025, RHI is trading around $54.52. The current consensus among analysts places the average 12-month price target at roughly $70. That suggests a potential upside of about 28% from current levels, assuming some normalization in business conditions later this year.
While opinions are split, the stock continues to draw attention from analysts who are watching closely for signs of either a bottom or continued softness in the professional staffing space.
Earning Report Summary
Revenue and Earnings Trends
Robert Half’s fourth quarter earnings came in a bit soft, but nothing too surprising given the current climate. They pulled in $1.382 billion in revenue, which is about 6 percent lower than the same quarter a year ago. Earnings per share dropped too, landing at $0.53 compared to $0.83 this time last year. Not great, but very much in line with what they had been preparing for.
What helped cushion the blow was their consulting division, Protiviti. That side of the business actually posted year-over-year growth for the second straight quarter, which is impressive when you consider how much pressure the broader job market has been under.
Stability in Staffing and Business Confidence
One thing worth noting is how steady their contract staffing revenue was during the back half of the year. From early summer through the holiday season, revenue stayed level for over five months. That kind of consistency isn’t common in this kind of market and points to some underlying stability in their operations.
They also made a point of highlighting a pickup in business sentiment across the U.S., especially after the elections. That’s giving them a bit more optimism heading into 2025, and they’re positioning themselves to take advantage of any uptick in hiring or project demand.
Cash Flow, Dividends, and Buybacks
Cash flow remained strong, with $155 million generated from operations in the quarter. That’s more than enough to cover shareholder returns. They kept the dividend moving in the right direction too—$0.53 per share paid in December, which marked a 10.4 percent increase over last year. Robert Half has a long history of raising the dividend steadily, and this quarter continued that trend.
They also repurchased about a million shares, spending $77 million on buybacks. With more than 7 million shares still approved for repurchase, they have plenty of flexibility going forward.
Segment Breakdown and Financial Strength
Looking at the breakdown, U.S. staffing brought in $686 million, which was down 11 percent year-over-year. International staffing was off by 14 percent, landing at $208 million. On the other hand, Protiviti clocked in at $488 million, with U.S. consulting revenue actually rising 6 percent once currency effects were stripped out.
Financially, the company is in a healthy spot. They’re sitting on more cash than debt, the return on equity is strong at nearly 17 percent, and while margins have narrowed a bit, they’re still running a profitable, cash-generating business.
Financial Health and Stability
This is where Robert Half shines quietly. It’s not drowning in debt, not issuing loads of stock, and not blowing through cash. With a current ratio of 1.66 and debt-to-equity under 17%, the company’s financials are built to handle bumps in the road.
Return on equity sits just under 17%, which speaks to efficient capital use—even in a slower market. Margins are tighter these days, with operating margin around 4.7%, but the business remains in the black and cash-flow positive.
In short, the foundation looks strong, even if the house is weathering a storm.
Valuation and Stock Performance
The stock has taken a hit. Trading at just under $55, it’s hovering close to its 52-week low of $51.55 and a far cry from last year’s high of nearly $80. That kind of drop pulls the valuation into more attractive territory for dividend-focused buyers.
Price-to-sales is just under 1x. Price-to-book is around 4.1x. Forward price-to-earnings sits at 21.5x—higher than you might expect at first glance, but also a reflection of compressed earnings in a downturn.
The EV/EBITDA ratio of 16 points to the market expecting a rebound in profitability. If that rebound doesn’t materialize, the valuation might stay elevated. But for now, it looks like the stock is pricing in a good deal of the bad news.
Risks and Considerations
It’s important to acknowledge the risks. This is a cyclical business, and the cycle right now isn’t exactly in its favor. If hiring continues to slow or if we tip into a broader economic contraction, RHI’s revenue and earnings could stay soft longer than expected.
The high payout ratio leaves little wiggle room if things deteriorate much further. And with over 15% of the float currently shorted, there’s clearly skepticism about a near-term recovery.
Revenue decline and margin compression aren’t just temporary annoyances—they could signal a longer-term challenge if the labor market doesn’t bounce back. While Robert Half has weathered downturns before, there’s always the chance that this one lingers longer than usual.
Final Thoughts
Robert Half isn’t a headline-grabbing stock, but for those who appreciate the quieter strengths—solid cash flow, minimal debt, and a commitment to the dividend—it has real appeal.
The yield is generous, the balance sheet is clean, and the company’s track record of returning capital to shareholders is both long and consistent. Yes, the payout ratio is high. Yes, the business is in a cyclical slump. But the fundamentals show a company that’s not panicking, not over-leveraged, and not backing down from its dividend promise.
For dividend investors who value steady income and are comfortable riding through some economic chop, Robert Half stands as a name worth watching. The market may be uneasy about its near-term growth, but its long-term discipline is hard to ignore.