Automobile manufacturer Ford (F) will raise its quarterly dividend by 20 percent from $0.125 to $0.15 per share in the first quarter of 2015. This follows a 25.0 percent dividend hike by Ford last year.

According to Ford, the dividend increase is consistent with the company’s capital strategy of financing its plan, further strengthening its balance sheet and providing attractive returns to shareholders. The indicated dividend yield for Ford Motor Co. is 3.9% at the current stock price of $15.22.

Ford Motor Company designs, manufactures, markets and services a full line of Ford cars, trucks, SUVs, electrified vehicles and Lincoln luxury vehicles, provides financial services through Ford Motor Credit Company. Ford Motor Company is based in Dearborn, Michigan. Ford was incorporated in Delaware in 1919. Ford acquired the business of a Michigan company, also known as Ford Motor Company, which had been incorporated in 1903 to produce and sell automobiles designed and engineered by Henry Ford.