Tax preparation firm H&R Block (HRB) - Get Report  on Tuesday reported better-than-expected fiscal fourth-quarter and full-year earnings, raised its dividend and announced it was acquiring Toronto-based Wave Financial for $405 million in cash.

The Kansas City-based company reported first-quarter net income of $877.9 million, or $4.32 a share, vs. $1.14 billion, or $5.45 a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of $4.13 a share. Revenue for the quarter came in at $2.33 billion vs. $2.39 billion a year ago.

For the year, the company said it earned $422.5 million, or $2.05 a share, vs. $613.1 million, or $2.93 a share, in the year-earlier quarter. Analysts had expected per-share earnings of $1.99. 

The company also said it was raising its quarterly dividend by 4% to 26 cents a share, or $1.04 annually.

Separately, H&R Block announced that it has agreed to acquire Toronto-based financial services firm Wave Financial.

The acquisition, which is subject to regulatory approval and closing conditions, expands H&R Block's product and client portfolio with Wave's accounting, invoicing, payroll, and payments software solutions geared to small businesses.

"Wave provides us the opportunity to accelerate our small business strategy and is a great strategic fit, as both companies can leverage each other's capabilities to bring tax and financial solutions to small business owners, serving more clients in more ways," H&R Block CEO Jeff Jones said in a statement.

Shares of H&R Block were up 3.2% to $27.79 in trading Tuesday.