![]() Even under that scenario, the projected EPS for 2023, which stands at $4.49, will be higher than the 20 EPS.Īlly Financial is a new dividend payer. In the future, analysts' consensus, as seen on Seeking Alpha, expects Ally Financial to suffer from lower EPS before stabilizing in 2024 as the company has to deal with higher rates and possibly a recession with higher charge-offs. A lower share count, higher sales, and higher margins led to fast growth. EPS has almost quadrupled during that decade as the company could raise money cheaply, offer low interest on deposits, and enjoy a high margin on its loans. The EPS (earnings per share) has grown much faster during that decade. In the future, analysts' consensus, as seen on Seeking Alpha, expects Ally Financial to keep growing sales at an annual rate of 2.5% in the medium term as it has to deal with slower growth due to higher rates. The low-interest rates environment over the last decade and the increasing need to finance new purchases by the public supported the company's growth pattern. Most of the sales come from its financing operations. Sales of Ally Financial have increased by more than 50% over the last decade. It operates through four segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. Seeking Alpha's company overview shows that:Īlly Financial, a digital financial services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. I will then try to determine if it's a good investment. I will examine the company's fundamentals, valuation, growth opportunities, and risks. I am using the same method to make it easier to compare researched companies. I will analyze the company using my methodology for analyzing dividend growth stocks. I will analyze a digital bank, Ally Financial ( NYSE: ALLY), in this article. I own banks, insurers, and asset managers in the financial industry. Therefore, I will analyze more companies from these two sectors as they both suffered during the current downturn. My dividend growth portfolio lacks exposure to two main sectors: financials and information technology. The current market volatility can provide an opportunity to acquire future income for lower prices. On other occasions, I start a new position to diversify my portfolio further, increase my income and gain exposure to new segments. ![]() Most of the time, I add to existing positions that I find attractive. As a dividend growth investor, I constantly seek income-producing investments to supplement my passive income.
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