Ace investor Warren Buffet has an impressive track record of picking the right stocks and earning billions through them. Warren Buffet earns millions and billions not just through stock profits but with larger dividends too. The move keeps his wealth at the top forever despite the global financial circumstances. His company Berkshire Hathaway owns a variety of stocks that include every industry the US stock market has to offer.
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However, despite his strong expertise, one dividend stock is down 42% leading to the list of Warren Buffet’s losses. The stock is down 42% from its peak of 2021 never to recover in the last three years. The stock is none other than the consumer-focused bank Ally Financial (ALLY) which is relentlessly on a downward spiral.
Despite the drastic loss, Warren Buffet has not sold the stocks and Berkshire Hathaway continues to hold it. While Warren Buffet can afford to keep stocks that deliver losses, not everyone is blessed with the same fate. The stock market never gives the middle class a good night’s sleep as losses are the sole cause of worries.
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Should You Buy Warren Buffet’s Dividend Stock In 2024?
Ally Financial has been in the market for over a century as the financial arm of General Motors. However. it has now rebranded itself as an individual financial institution as Ally Financial since 2010. Ally Financial is among America’s oldest banks and adapted to the current generation of banking as its services are digital. It does not have the presence of physical branches across the country.
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The big advantage without a physical branch is that it doesn’t have the staffing and real-estate-related expenses. This saves the company big expenses as it increasingly focuses on digital transactions.
However, Ally Financial has an above-average dividend record despite being down 42% since 2021. The stock currently offers a healthy 3.6% dividend yield that could grow further in the coming years. Therefore, investors who hold on to the stock have chances of earning bigger dividends over the years.
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This could be the sole reason why Warren Buffet has not sold his stocks in Ally Financial. The stock gives better dividend yields even after being down 42%. Warren Buffet is making the most out of the dividend yields than the stock returns itself.