GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » Ally Financial Inc (STU:GMZ) » Definitions » 5-Year Yield-on-Cost %

Ally Financial (STU:GMZ) 5-Year Yield-on-Cost % : 6.82 (As of Dec. 13, 2024)


View and export this data going back to 2014. Start your Free Trial

What is Ally Financial 5-Year Yield-on-Cost %?

Ally Financial's yield on cost for the quarter that ended in Sep. 2024 was 6.82.


The historical rank and industry rank for Ally Financial's 5-Year Yield-on-Cost % or its related term are showing as below:

STU:GMZ' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.88   Med: 4.75   Max: 13.14
Current: 6.82


During the past 13 years, Ally Financial's highest Yield on Cost was 13.14. The lowest was 0.88. And the median was 4.75.


STU:GMZ's 5-Year Yield-on-Cost % is ranked better than
74.88% of 207 companies
in the Credit Services industry
Industry Median: 3.64 vs STU:GMZ: 6.82

Competitive Comparison of Ally Financial's 5-Year Yield-on-Cost %

For the Credit Services subindustry, Ally Financial's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ally Financial's 5-Year Yield-on-Cost % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Ally Financial's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Ally Financial's 5-Year Yield-on-Cost % falls into.



Ally Financial 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Ally Financial is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5

Ally Financial  (STU:GMZ) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Ally Financial 5-Year Yield-on-Cost % Related Terms

Thank you for viewing the detailed overview of Ally Financial's 5-Year Yield-on-Cost % provided by GuruFocus.com. Please click on the following links to see related term pages.


Ally Financial Business Description

Traded in Other Exchanges
Address
500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model, which includes brokerage services.