Benzinga | Jul 13, 2021 04:18PM EDT

Ally Financial Announces A $2B Repurchase Program; Will Replace Previously Announced $1.6B Repurchase Plan

Ally Financial Inc. (NYSE:ALLY) today announced that its board of directors has authorized the company to repurchase up to $2.0 billion of the company's common stock for 2021. This share repurchase program replaces the $1.6 billion authorization previously announced on Jan. 12, 2021. Additionally, the board of directors declared a quarterly cash dividend of $0.25 per share of the company's common stock, payable on Aug. 16, 2021, to stockholders of record on Aug. 2, 2021, representing a 32% per share increase relative to the company's prior quarterly cash dividend and the sixth increase since Ally began paying common dividends in 2016.

"The strength of our businesses and resiliency of our balance sheet, including our robust capital position, support our ability to meaningfully increase our common dividend and share repurchase program," said Ally Chief Executive Officer Jeffrey J. Brown. "Our capital deployment priorities remain centered around investing in growth opportunities across our businesses, aimed at delivering innovative and differentiated products for our customers while prudently returning excess capital to our shareholders. This approach has consistently driven value for all of our stakeholders and remains a cornerstone of our long-term strategy."

The repurchase program enables Ally to acquire shares through open market purchases or privately negotiated transactions, including through a Rule 10b5-1 plan, at the discretion of management and on terms (including quantity, timing, and price) that management determines to be advisable. Actions in connection with the repurchase program will be subject to various factors, including Ally's capital and liquidity positions, accounting and regulatory considerations (including any restrictions that may be imposed by the Federal Reserve), Ally's financial and operational performance, alternative uses of capital, the trading price of Ally's common stock, and general market conditions. The repurchase program does not obligate Ally to acquire a specific dollar amount or number of shares and may be extended, modified, or discontinued at any time.