Is Ally Financial's Nearly 4% Dividend Yield Sustainable?
The large digital consumer bank Ally Financial (NYSE: ALLY), which specializes in auto lending, has seen its annual dividend yield climb from around 2% prior to the pandemic to now approaching 4%, which is a very strong yield.
But as a dividend investor, it's always good to be on high alert when you start to see the dividend yield move up quickly. The goal is to invest in companies that can sustain their dividend and raise it regularly. With that said, let's take a look at whether or not Ally's dividend yield is sustainable.
Ally has been paying a dividend successfully since 2016 and managed to raise its dividend every year as well. The bank's two most aggressive hikes to its quarterly dividend yield came in 2021 and 2022. Since 2016, Ally has hiked its quarterly dividend by 275%.
Source Fool.com
