Ally Financial (ALLY) Reports Up to $1.6B Share Buyback; Declares $0.19 Quarterly Dividend, 2% Yield

Ally Financial (NYSE: ALLY) declared a quarterly dividend of $0.19 per share, or $0.76 annualized.

The dividend will be payable on February 12, 2021, to stockholders of record on February 1, 2021, with an ex-dividend date of January 29, 2021.

The annual yield on the dividend is 2 percent.

Share Buyback

The Board of directors has authorized the company to repurchase up to $1.60 billion of the company's common stock in 2021. The company will begin repurchasing shares in the first quarter, in accordance with the FRB's modified restrictions that limit combined repurchases and common dividends to an amount that does not exceed the average net income of the four preceding calendar quarters. Additionally, the board of directors declared a quarterly cash dividend of $0.19 per share of the company's common stock, payable on Feb. 12, 2021 to stockholders of record on Feb. 1, 2021.

"The results of the Federal Reserve's stress test reflect the strength of Ally's balance sheet and capital position, allowing us to resume our share repurchase program, an important component of Ally's capital allocation framework," said Ally Chief Executive Officer Jeffrey J. Brown. "We enter 2021 with excess capital relative to both regulatory requirements and internal targets, and are well positioned to continue delivering long-term value for our customers, communities and shareholders."

For a dividend history and other dividend-related data on Ally Financial (ALLY) click here.

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