Legendary stock market investor Warren Buffett is more widely known for the stocks he buys that go up, but they can't all be zingers. Shares of consumer-focused bank Ally Financial (NYSE: ALLY) have fallen since Buffett added the stock to Berkshire Hathaway's equity portfolio in early 2022, and it's down about 42% from the peak it reached in 2021.

Berkshire Hathaway sold 14 stocks during the third quarter of 2023, seven of which were closed out completely. One that didn't land on the chopping block, though, was Ally Financial.

Last year was a banger for the overall stock market, and Ally Financial rose 43% in 2023, but it still looks like a bargain. Here's why investors seeking dividend income might want to buy it now and hold for the long run.

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Source Fool.com