Ally's dividend per share has grown by 275% since it was initiated in 2018, but increases were paused when interest rate headwinds began. With a 3.54% annual dividend yield, Ally has an attractive-looking dividend with room to grow over the next few years.

The decision by the Fed's policy-setting committee to cut interest rates for the first time since March 2020 was prefaced by an unusual amount of market uncertainty as to how much the central bank would lower its benchmark rate from a two-decade high of 5.25% to 5.5%, where it has stood since July 2023.

The federal funds rate is the interest banks charge each other for overnight loans. Set by the Federal Reserve, it's a basis for other interest rates.