Image Source: Pexels
 

Ally Financial Inc bears the ticker symbol ALLY, and this is my first mention of ALLY for my new Viking Portfolio or any of my previous seven Dog of The Week Portfolios.

Ally Financial Inc is a diversified financial services firm that services automotive dealers and their retail customers.

The company operates as a financial holding company and a bank holding company. Its banking subsidiary, Ally Bank, caters to the direct banking market through Internet, mobile, and mail.

The company reports four business segments including Automotive Finance operations, Insurance Operations, Mortgage Finance operations, and Corporate Finance operations.

The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010.

Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.

Three key data points gauge Ally Financial Inc

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

ALLY Price

ALLY’s price per share was $26.08 at Monday’s market close. However, in the past year, ALLY’s share price dropped $21.63 or over 75%.

If ALLY’s stock trades in the range of $15.00 to $45.00 this next year, its recent $26.08 share price might reach $30.00 by next year. My upside increase estimate of $3.92 is about $2.95 below the median of annual target ALLY share price estimates from the eighteen analysts tracking ALLY’s stock prospects.
 

ALLY Dividends

Ally Financial Inc’s most recently declared a quarterly dividend of $0.30 per share, which equals  $1.20 annually to cast a yield of 4.6%.
 

ALLY Returns

Adding the $1.20 annual ALLY dividend to my one-year price upside estimate of $3.92 reveals a $5.12 potential gross gain per share.

At Monday’s $26.08 closing price, a little over $1000 would buy 38 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.26 per share.

Subtracting that maybe $0.26 brokerage cost from my estimated $5.12 gross gain per share results in a net gain of $4.86 X 38 shares = $184.68 for an 18.4% net gain including a 4.6% annual dividend yield.

In a year our $1K investment in shares of Ally Financial Inc would generate $46.00 in cash dividends. Of course, a single share of ALLY stock at Monday's $26.08 price is almost $20.00 less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy Ally Financial Inc’s shares based on their dividends for the coming year 2023. The current dividend from the $1K invested is $19.92 greater than ALLY’s single share price. Consider yourself alerted. Now may be the prime time to pick up ALLY.

All of the estimates above are speculation based on the past history of Ally Financial Inc. Only time and money invested in this stock will determine its market value.

More By This Author:

Current Report: U.S. Bancorp (USB)
Stock Analysis: PetMed Express
Daily Stock Analysis: Haverty Furniture