By Tess Stynes 

Ford Motor Co. raised its quarterly dividend by 20% for its Class B and common shares outstanding, a move the auto maker said reflects its capital strategy.

The auto maker's quarterly payout to shareholders was raised to 15 cents a share, an increase of 2.5 cents a share, resulting in a yield of 4%. The company's first quarter dividend is payable to shareholders of record at the close of business on Jan. 30.

Ford raised its dividend to 12.5 cents a share from 10 cents almost exactly one year ago.

The dividend increase comes three days after the auto industry reported its strongest annual U.S. sales since 2006, taking advantage of low fuel prices and interest rates to rebound from a global financial crisis that hammered results and forced some companies to undergo government-brokered restructurings.

However, Ford's sales were flat in December, rising slightly to 219,369. The figure was held back by intentionally fewer sales to rental-car companies and a limited supply of its best-selling F-150 pickup. Ford said it sold nearly 2.5 million vehicles in 2014, down slightly from a year ago.

Ford shares rose 1.9% in recent premarket trading to $15.33.

Mike Ramsey and Mike Spector contributed to this article.

Write to Tess Stynes at tess.stynes@wsj.com

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