5 Best Dividend Stocks to Buy in August According to Hedge Funds

3. Ally Financial Inc. (NYSE: ALLY)

Number of Hedge Fund Holders: 51
Dividend Yield: 2%

Ally Financial Inc. (NYSE: ALLY) is a bank holding company operating mainly in the US and Canada to serve consumer, commercial, and corporate customers and provide them with digital financial products and services. The company ranks 3rd on our list of the best dividend stocks to buy in August according to hedge funds.

Arren Cyganovich, an analyst at Citigroup, raised his price target on shares of Ally Financial Inc. (NYSE: ALLY) this July as well. The new price target stands at $63 versus the previous $59 target, with the analyst also reiterating a Buy rating on the stock.

In the second quarter of 2021, Ally Financial Inc. (NYSE: ALLY) had an EPS of $2.33, beating estimates by $0.83. The company’s revenue was $2.08 billion, up 29.58% year over year and also beating estimates by $213.29 million. Ally Financial Inc. (NYSE: ALLY) has also gained 25.46% in the past 6 months and 46.18% year to date.

By the end of the first quarter of 2021, 51 hedge funds out of the 866 tracked by Insider Monkey held stakes in Ally Financial Inc. (NYSE: ALLY) worth roughly $2.801 billion. This is compared to 57 hedge funds in the previous quarter with a total stake value of approximately $2.59 billion.