Ally Financial has consistently paid dividends since 1977, with a dividend yield of around 4% as of 2022.
The company's dividend payout ratio is relatively stable, averaging around 25% over the past five years.
Ally Financial's dividend growth rate has been steady, with a five-year annual growth rate of 10%.
Its strong financial position and history of paying consistent dividends make Ally Financial an attractive option for income investors.
Dividend Information
Ally Financial's dividend yield is a key metric for investors to consider. It's currently 2.8%, which is a relatively stable figure.
The company's dividend per share is a significant $1.200, indicating a substantial payout to shareholders. This is a notable aspect of Ally Financial's dividend strategy.
To get a better sense of the company's dividend history, you can look at the Ally Financial dividend yield graph, which shows the company's dividend yield over the last 12 months. This visual representation can help identify trends or patterns in the company's dividend payments.
Here's a breakdown of Ally Financial's dividend information:
Dividend Payments
Ally Financial has a dividend yield of close to 4% and a history of raising its payout to shareholders.
The company has paid a dividend for 8 years, but its dividend payments have only been increasing recently. Ally Financial's dividend payments have increased, but the company has only paid a dividend for 8 years.
The current quarterly dividend is $0.30 per share, which is a relatively stable amount. Ally Financial currently pays a quarterly dividend of $0.30 per share and has a dividend yield of 2.85%, as of August 21.
The dividend yield is a key factor in determining the attractiveness of the stock, and Ally Financial's yield is one of the highest in the financial sector. One way to dampen the effects of volatility in your portfolio is to buy stocks with high dividend yields that give you a steady income stream.
Ally Financial's dividend history and growth can be affected by many factors, such as profitability, cash flow, and financial stability. It is important to note that ALLY’s dividend history and growth can be affected by many factors, such as profitability, cash flow, and financial stability, as well as its growth prospects and dividend payout policies.
The company's dividend payments are well covered by earnings, with a payout ratio of 47.4%. Earnings Coverage: With its reasonably low payout ratio (47.4%), ALLY's dividend payments are well covered by earnings.
The future dividend coverage is also expected to be strong, with a forecasted payout ratio of 18.7% in 3 years. Future Dividend Coverage: ALLY's dividends in 3 years are forecast to be well covered by earnings (18.7% payout ratio).
Market and Performance
Ally Financial's dividend yield is significantly higher than the bottom 25% of dividend payers in the US market, at 3.3% compared to 1.5%.
Its dividend yield is more than double the S&P 500's yield of 1.5%. The company has consistently raised its dividend, with a 100% increase over the past five years.
The table below compares Ally Financial's dividend yield to the market:
This suggests that Ally Financial's dividend is a notable one, but not a high dividend compared to the top 25% of dividend payers in the US market.
Stock Performance
Ally's stock has been beaten down in the last two years, likely due to concerns about rising interest rates and falling car prices.
The company's dividend yield is currently 4%, which is more than double the S&P 500's yield of 1.5%. This makes the stock a great income play at current prices.
Ally has consistently raised its dividend, which has increased more than 100% in the past five years. However, the company's management has seen significant changes in recent years, with three key executives leaving in the past five quarters.
The stock is currently cheap and the company has a banking operation set to keep growing. Ally has added retail banking customers for 58 straight quarters, which is the lifeblood of the banking business.
Here's a breakdown of Ally's dividend history and growth:
Ally's dividend safety is relatively high, with a payout ratio of about 54.41%. This indicates that the company has enough earnings to pay dividends and retain earnings to reinvest in the business.
Market
The US market has a wide range of dividend yields, with the bottom 25% averaging 1.5% and the top 25% averaging 4.5%. This means that ALLY's dividend yield of 3.3% is higher than the bottom 25% but lower than the top 25%.
The industry average for dividend yield in the Consumer Finance sector is 1.6%, which is lower than ALLY's 3.3%. This suggests that ALLY's dividend yield is above average for its industry.
Here's a comparison of the market's dividend yields:
Analysts forecast ALLY's dividend yield to be around 2.8% over the next three years, which is lower than its current yield of 3.3%. This could indicate a slight decrease in dividend yield in the future.
Nyse: Ally Inc. (NYSE:ALLY)
Ally Financial Inc. (NYSE:ALLY) has a strong presence in auto lending and an expanding deposit base, creating a solid platform for future growth.
The company's digital-first strategy enables lower overhead costs compared to traditional banks.
Ally Financial Inc. (NYSE:ALLY) has reported 61 consecutive quarters of deposit customer growth and over one million actively engaged savings customers.
Its customer retention rate is 96%, up from 1.2 million deposit customers in 2016 to 3.2 million in the second quarter of 2024.
The company pays a quarterly dividend of $0.30 per share and has a dividend yield of 2.85%, as of August 21.
Here are some key dividend metrics for Ally Financial Inc. (NYSE:ALLY):
Berkshire Hathaway held 29 million shares in Ally Financial Inc. (NYSE:ALLY) at the end of the second quarter of 2024, valued at over $1.15 billion.
Key Details
The key details of Ally Financial's dividend are quite impressive.
The total shareholder yield is a healthy 3.7%.
Dividend growth is strong, coming in at 9.4% annually.
Here are the key details at a glance:
The future dividend yield is a more modest 2.8%.
Frequently Asked Questions
Is Ally Financial a buy sell or hold?
Ally Financial has a consensus rating of buy, based on 26 buy ratings, 19 hold ratings, and 14 sell ratings. Investors may want to consider this when making a decision about Ally Financial stock.
How much ALLY stock does Warren Buffett own?
Warren Buffett owns approximately 9.53% of Ally Financial's outstanding stock. This stake was built up between Q1 2022 and Q2 2022, but has since been reduced by the sale of 1 million shares.
Who is the largest shareholder of Ally Financial?
Ally Financial's largest shareholders include Berkshire Hathaway Inc, BlackRock, Inc., and Vanguard Group Inc, among others. These prominent investors hold significant stakes in the company.
Sources
- https://www.koyfin.com/company/ally/dividends/
- https://simplywall.st/stocks/us/diversified-financials/nyse-ally/ally-financial/dividend
- https://www.fool.com/investing/2023/12/13/is-ally-financial-a-no-brainer-dividend-stock-for/
- https://www.fool.com/investing/2024/11/16/2-no-brainer-dividend-stocks-to-buy-right-now-for/
- https://www.insidermonkey.com/blog/is-ally-financial-inc-ally-a-good-dividend-stock-according-to-warren-buffett-1340460/
Featured Images: pexels.com