Ally Financial Inc. (NYSE:ALLY) Plans Quarterly Dividend of $0.30

Key Points

• Ally Financial declared a quarterly dividend of $0.30 per share (annualized $1.20), with an ex-dividend and record date of May 1 and payment on May 15, implying a yield of about 2.8%.
• The dividend appears well covered — Ally's payout ratio is roughly 22.1%, and analysts forecast about $5.47 in EPS next year, suggesting a future payout ratio near 21.9%.
• Ally recently beat Q4 estimates with $1.09 EPS versus $1.01 expected and $2.17B in revenue (up 4.8% YoY); the stock has a consensus "Moderate Buy" rating and an average price target of $53.29.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) announced a quarterly dividend on Tuesday, April 14th. Investors of record on Friday, May 1st will be given a dividend of 0.30 per share by the financial services provider on Friday, May 15th. This represents a c) dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date is Friday, May 1st.

Ally Financial has raised its dividend by an average of 0.1%annually over the last three years. Ally Financial has a payout ratio of 22.1% meaning its dividend is sufficiently covered by earnings. Analysts expect Ally Financial to earn $5.47 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 21.9%.

Ally Financial Stock Performance

Shares of Ally Financial stock opened at $42.23 on Thursday. The company has a market capitalization of $13.00 billion, a PE ratio of 17.97, a PEG ratio of 0.21 and a beta of 1.14. Ally Financial has a 12 month low of $29.91 and a 12 month high of $47.27. The company has a current ratio of 0.92, a quick ratio of 0.92 and a debt-to-equity ratio of 1.30. The stock's fifty day simple moving average is $39.97 and its 200 day simple moving average is $41.22.

Ally Financial (NYSE:ALLY - Get Free Report) last posted its earnings results on Wednesday, January 21st. The financial services provider reported $1.09 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.01 by $0.08. Ally Financial had a return on equity of 10.40% and a net margin of 10.77%.The firm had revenue of $2.17 billion during the quarter, compared to analysts' expectations of $2.15 billion. During the same period in the previous year, the firm earned $0.78 earnings per share. The company's revenue was up 4.8% on a year-over-year basis. On average, research analysts predict that Ally Financial will post 3.57 EPS for the current year.

Analysts Set New Price Targets

Several research firms have recently weighed in on ALLY. Royal Bank Of Canada reiterated an "outperform" rating and set a $52.00 price objective on shares of Ally Financial in a report on Monday, January 12th. The Goldman Sachs Group restated a "neutral" rating and set a $55.00 target price on shares of Ally Financial in a report on Tuesday, January 6th. BTIG Research reaffirmed a "neutral" rating on shares of Ally Financial in a research note on Tuesday, January 6th. TD Cowen reiterated a "buy" rating on shares of Ally Financial in a report on Thursday, January 8th. Finally, Barclays increased their price objective on shares of Ally Financial from $44.00 to $54.00 and gave the stock an "equal weight" rating in a research report on Monday, January 5th. Twelve research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $53.29.

Ally Financial Company Profile

Ally Financial Inc is a leading digital financial services company headquartered in Detroit, Michigan. The company offers a comprehensive suite of banking, lending, and insurance products designed for retail and commercial customers. Through its online-only platform, Ally Bank provides checking and savings accounts, certificates of deposit, money market accounts, and home mortgages, emphasizing competitive rates and user-friendly mobile and web experiences.

In addition to its banking operations, Ally Financial is a major player in automotive financing and leasing.

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