A diversified portfolio with stocks in different categories and industries is the best way for most people to maximize their investments. If you have $1,000 available to invest and are in the market for an excellent dividend stock, consider Ally Financial (NYSE: ALLY). Here's why it could be the ultimate dividend stock.

The yield is probably the first thing on an investor's list when thinking about a great dividend stock. The yield is the rate of return on the investment. If a dividend yields 1.35%, which is the average S&P 500 yield, you're making that much annually on your principal, or the amount of money you put in.

For example, if you invested $100 in a stock whose dividend yield is 1.35%, you would receive $1.35 annually. That's why the yield, more so than the actual amount of the dividend itself, is what gets the attention.

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Source Fool.com