The shares of Ally Financial climbed 2.1 % in premarket trade on Wednesday after the company's board of directors approved a new share repurchase program as well as a larger dividend.

The corporation plans to start repurchasing shares in the first quarter of 2022 and spend up to $2 billion on the exercise throughout the year. In 2021, Ally executed a $2 billion stock repurchase program.

File:Ally Bank logo.svg - Wikimedia Commons

Ally's equity base of around 346 million shares had a market valuation of $17.5 billion as of Tuesday's closing price of $50.54. At that price, a $2 billion investment would allow the corporation to purchase about 40 million shares, or slightly over 11% of its stock.

The stock buyback does not bind the corporation to a specific amount or price at which it must purchase the shares.

Ally will also pay a 20 % boost in dividends to its shareholders, to 30 cents per share. The dividend will be paid to shareholders whose names appear on the company's books as of February 1.

Dividends will also be paid to holders of the company's series B and C preferred equities.