Citigroup (C) Announces 1-for-10 Reverse Stock Split, Reinstates Dividend

Citigroup Inc. (NYSE: C) announced Monday that it has approved a 1-for-10 reverse stock split of its common stock, while the bank has also reintated a quarterly dividend of $0.01 per common share for the second quarter of 2011.

CEO Vikram Pandit said, "Citi is a fundamentally different company than it was three years ago. The reverse stock split and intention to reinstate a dividend are important steps as we anticipate returning capital to shareholders starting next year."

Citigroup said that the reverse stock split will be effective at the close of trading on May 6, while the common stock will begin its adjusted trading on May 9. The split will reduce the number of outstanding shares of Citigroup common stock from approximately 29 billion to approximately 2.9 billion.

The quarterly dividend will be reinstated the date of the stock split. The announcement comes just one trading day following the increase of dividends by several Wall Street rivals.

Shares of Citigroup are up 1.33 percent to $4.56 in premarket movement on Monday.

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