- Ally Financial Inc’s (NYSE: ALLY) share price rose more than 2% during today’s intraday trading. That’s why it happened.
Ally Financial Inc’s (NYSE: ALLY) share price rose more than 2% during today’s intraday trading. Investors are responding positively to Ally Financial’s announcement that its board of directors has authorized the company to repurchase up to $ 2 billion of its common stock, with effect until December 31, 2022.
Ally had recently completed a $ 2 billion share repurchase program in 2021 and plans to begin repurchasing shares in the first quarter of 2022. Additionally, the board of directors declared a quarterly cash dividend of 0, $ 30 per share of the company’s common stock – representing a 20% increase over the company’s previous quarterly cash dividend. This dividend will be payable on February 15, 2022, to shareholders of record on February 1, 2022.
Ally’s board of directors also declared quarterly cash dividend payments for the Company’s Series B and Series C preferred shares, payable on February 15, 2022, to shareholders of record on January 31, 2022. And a payment quarterly cash dividend was declared on Ally’s 4,700. % Fixed Rate Perpetual Non-Cumulative Preferred Stock, Series B, of approximately $ 15.9 million, or $ 11.75 per share. In addition, a dividend payment was declared on Ally Fixed Rate Non-Cumulative Perpetual Preferred Shares Series C of approximately $ 11.8 million, or $ 11.75 per share.
“The strength of Ally’s balance sheet and capital position allows us to significantly increase our common dividend for the seventh time in as many years and to maintain a strong share buyback program. Both actions represent important elements of our capital allocation framework and our broader goal of generating long-term value for all of our stakeholders. “
– Ally President and CEO Jeffrey J. Brown
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