5 Dividend Stocks to Buy According to Billionaire Louis Bacon

2. Ally Financial Inc. (NYSE:ALLY)

Dividend Yield as of August 8: 3.68%
Moore Global Investments’ Stake Value: $29,903,000

Ally Financial Inc. (NYSE:ALLY) is a Michigan-based bank holding company that also provides financial services to its customers. In Q1 2022, Moore Global Investments reduced its position in the company by 41%, selling off a stake worth over $25 million. The hedge fund’s total stake in the company amounted to roughly $30 million, which represented 0.76% of Louis Bacon’s portfolio.

Ally Financial Inc. (NYSE:ALLY) pays a quarterly dividend of $0.30 per share, with a dividend yield of 3.68%, as of August 8. The company has grown its dividends consistently for the past five years at a CAGR of 26%.

Appreciating the company’s Q2 results, Deutsche Bank set a $55 price target on Ally Financial Inc. (NYSE:ALLY) in July while maintaining a Buy rating on the shares.

At the end of Q1 2022, 49 hedge funds tracked by Insider Monkey held investments in Ally Financial Inc. (NYSE:ALLY), up from 48 in the previous quarter. The stakes owned by hedge funds have a consolidated value of over $2.4 billion.

Oakmark Funds mentioned Ally Financial Inc. (NYSE:ALLY) in its Q2 2022 investor letter. Here is what the firm has to say:

“As for Ally Financial, fears of a recession drove the stock price down more than 20% for the period, but business fundamentals have remained strong and the shares now trade for just a mid-single-digit multiple of current earnings. We believe today’s price ignores the funding cost improvements and well-capitalized nature of Ally’s balance sheet. We continue to own both investments given their significant discounts to our estimates of business value.”