Ally Financial stock rises on dividend hike, buyback program

Ally Financial Inc.

shares rose in the extended session Tuesday after the financial services company’s board approved a dividend hike and a share-repurchase program. Ally shares rose 2% after hours, following a 0.8% rise to close the regular session at $50.54. The company said the board raised the quarterly dividend by 20% to 30 cents a share. The dividend is payable Feb. 15 to shareholders of record as of Feb. 1. Also, Ally announced its board authorized a $2 billion stock buyback program. “The strength of Ally’s balance sheet and capital position allows us to meaningfully increase our common dividend for the seventh time in as many years and maintain a robust share-repurchase program,” said Jeffrey Brown, Ally chief executive officer, in a statement.

Read more…