Ally Financial is benefiting from an improving credit outlook due to a "soft landing" for the US economy. Expect further progress in credit performance in the upcoming Q2 earnings release. Potential disruption and increased competition in the auto financing market are medium-term risks.
Ally Financial is a growing online bank with a dividend yield of 3.1%. Phillip Morris International is a nicotine giant with a growing set of products for consumers.
Ally Financial's (ALLY) efforts to diversify the revenue base will likely aid profits. Elevated costs due to inorganic growth efforts may hurt the bottom line.
There are dozens of stocks in Berkshire Hathaway's portfolio, many of which were hand-picked by CEO Warren Buffett himself. BYD and Ally Financial are both cheaply valued relative to their growth potential over the next few years.
Yield is an important factor in dividends, but there are other ones to take into account. A growing dividend yield due to falling share price can signal trouble at the company.