A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the second of five financial services sector stocks primed to join Volio as the ninth of nine representing the sector. One of the stocks I discuss this week could become the fiftieth overall selection for Volio!

My subject today is a mid-cap credit services firm named, Ally Financial Inc. Its trading ticker is ALLY. This is my first ever report on Ally Financial Inc for this any of my 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.

Founded in 1919, Ally emerged out of the bankruptcy of GMAC in 2008 and is headquartered in Detroit, MI.

I use three key data points to gauge dividend equities or funds like Ally Financial Inc:

(1) Price

(2) Dividends

(3) Returns

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

ALLY Price

Ally's price per share closed at $21.98 Monday. A year ago their price was $31.85. Price fell $9.87 or nearly 31% last year.

Assuming Ally's stock trades in the range of $8 to $32 this next year, its recent $21.98 price might rise by $3.02 to reach $25.00 by August 11, 2021.

ALLY Dividends

Ally's most recently declared quarterly dividend was $0.19, payable August 14th. That equates to $0.76 annually and yields 3.46% at Monday's $21.98 share price.

ALLY Gains?

Adding the $0.76 annual estimated dividend to my $3.02 optimistic estimate of Apollo's price upside shows a $3.78 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little under $1,000.00 today in Ally Financial Inc at $21.98, we would buy 45 shares of stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.22 per share.

Subtract that $0.22 brokerage cost from my estimated $3.78 gross gain per share results in a net gain of $3.56 X 45 shares = $160.20 for a 16.02% net gain on a $989.10 investment.

Thus, Ally Financial Inc shows a possible 16.00% net gain including a 3.46% dividend yield. It could be more, it could be less.

The above speculation is based on past performance and supposition. Only time and money invested will tell if Ally Financial Inc is worth it.