This article was originally published on TipRanks.com
Digital financial services company Ally Financial Inc. (NYSE:ALLY) recently announced a quarterly dividend of $0.30 per share, an increase of about 20% from the previous dividend of $0.25.
The dividend will be paid on February 15, 2022, to shareholders of record as of February 1, 2022.
The company’s annual dividend of $1.2 per share now reflects a dividend yield of 2.4% based on Tuesday’s closing price.
Notably, the company has been raising its quarterly dividend consistently over the past seven years, making it an attractive choice for investors.
Meanwhile, the company also authorized a share repurchase plan of up to $2 billion of its common stock, effective until December 31, 2022.
The CEO of Ally Financial, Jeffrey J. Brown, said, “The strength of Ally’s balance sheet and capital position allows us to meaningfully increase our common dividend for the seventh time in as many years and maintain a robust share-repurchase program. Both actions represent important components of our capital allocation framework and our broader objective to drive long-term value for all of our stakeholders.”
On January 11, RBC Capital analyst Jon Arfstrom reiterated a Buy rating on the stock with a price target of $61, which implies upside potential of 20.75 from current levels.
Consensus among analysts is a Strong Buy based on 11 Buys and 1 Hold. The average Ally Financial stock prediction of $65 implies upside potential of 28.6% from current levels. Shares have gained 31.7% over the past year.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Discovery’s performance.
According to the tool, the Ally Financial website recorded a 24.27% monthly fall in global visits in December, compared to the same period last year. Moreover, year-to-date, the website traffic has declined 1.71%, compared to the previous year.
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