Citigroup, which controls the nation's fourth largest residential lender, said it will execute a 1-for-10 reverse split of its stock and reinstate its dividend. It will be the lender's first payout to shareholders since 2009.
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Citi said it will reinstate a one-cent quarterly dividend in the second quarter of 2011 following the reverse split.
But the news did not help its stock price much on Monday. Its shares were trading down a few pennies to $4.42 a share while the Dow Jones Industrial Average was up almost 200 points.
Its residential affiliate, CitiMortgage of O'Fallon, Mo., funded $23 billion of loans in the fourth quarter, double its volume of a year ago, according to figures compiled by the Quarterly Data Report.
