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Ally Financial Gains on New $2 Billion Buyback Plan, Higher Dividend -Breaking

by Mike Robinson

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© Reuters

By Dhirendra Tripathi

Investing.com – Ally Financial stock (NYSE:) rose 2.1% in Wednesday’s premarket trading after the company’s board approved a fresh share repurchase program as well as a higher dividend.

According to the company, it plans to start repurchasing shares during the first quarter 2022 and to spend as much as $2 billion throughout the year. Ally just completed a 2 billion-dollar share repurchase programme in 2021.

Tuesday’s closing price of $50.54 gave Ally’s equity base of over 346 million shares a market cap of $17.5 billion. The company can buy 40 million shares at $2 billion, just under 11% with that amount.

Share buyback doesn’t tie the company to any amount or price at which it has to buy shares. 

Ally will also be paying a dividend to shareholders of 30 cents per share, which is a 20% increase. Shareholders whose names appear in the company’s books as on February 1 will get the dividend.

Stockholders of preferred series B or C stocks in the company will receive dividends.

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