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

Key Points

• Ally Financial announced a quarterly dividend of $0.30 per share, payable on August 14 to shareholders of record on July 31. The dividend has an annualized yield of about 2.6%.
• The company’s dividend appears well covered, with a payout ratio of 22.1%; analysts expect it can continue supporting the current $1.20 annual dividend based on projected earnings.
• Ally Financial also reported a strong recent quarter, beating earnings and revenue estimates with $1.11 EPS and $2.18 billion in revenue, while revenue rose 36.4% year over year.

Ally Financial Inc. (NYSE:ALLY - Get Free Report) announced a quarterly dividend on Monday, July 20th. Stockholders of record on Friday, July 31st will be given a dividend of 0.30 per share by the financial services provider on Friday, August 14th. This represents a c) annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, July 31st.

Ally Financial has raised its dividend by an average of 0.1%per year over the last three years. Ally Financial has a dividend payout ratio of 22.1% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Ally Financial to earn $6.46 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 18.6%.

Ally Financial Price Performance

Shares of Ally Financial stock opened at $45.48 on Tuesday. The stock has a market cap of $13.94 billion, a P/E ratio of 11.09, a P/E/G ratio of 0.26 and a beta of 1.09. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.93 and a current ratio of 0.93. The stock's fifty day moving average is $44.15 and its 200 day moving average is $42.64. Ally Financial has a one year low of $35.92 and a one year high of $47.29.

Ally Financial (NYSE:ALLY - Get Free Report) last released its quarterly earnings results on Friday, April 17th. The financial services provider reported $1.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.93 by $0.18. The business had revenue of $2.18 billion during the quarter, compared to analyst estimates of $2.14 billion. Ally Financial had a return on equity of 11.41% and a net margin of 16.47%.Ally Financial's revenue for the quarter was up 36.4% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.58 earnings per share. Sell-side analysts anticipate that Ally Financial will post 5.31 earnings per share for the current year.

About Ally Financial

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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