Covered, compounding — first raise since 2022. A 3.58% yield on a 28.3% payout is covered income with a fresh raise: $0.35 a quarter, raised in October 2026 by 16.7% from $0.30 — the first increase since 2022 — after Q3 2026 earnings of $1.34 a share and core return on tangible common equity of 13.1%. The payout leaves most earnings retained.
Key risk: Auto credit — Ally is concentrated in auto lending, and auto delinquencies and provisions rose in Q3 2026 even as retail auto charge-offs of 1.89% stayed within guidance, so a used-car or borrower downturn would pressure earnings.
Changes if: The payout pushes well past 28.3%, or retail auto charge-offs climb materially from 1.89% while delinquencies keep rising. Auto credit is the tripwire here.
- ✓Payout-coverage check: 28.3% — the $1.40 indicated dividend costs well under a third of earnings, leaving most earnings retained.
- ✓Yield check: 3.58% indicated — $0.35/qtr × 4 at the $39.06 close on Oct. 23, 2026. Real, earned yield from auto-lending and banking earnings, not a special or a return of capital.
- ✓Dividend growth check: First increase since 2022: raised Oct. 18, 2026 by 16.7%, from $0.30 to $0.35 a quarter, payable Nov. 16, 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.