Citigroup is planning a reverse stock split and its first quarterly dividend in order to build interest in its stock, Financial Times reports. The bank will exchange one share for every 10 on May 6, lowering its shares outstanding to 2.9 billion from 29 billion.
The reverse split will cut the cost of the one-cent dividend to $29 million a quarter. The bank’s reverse split and dividend plans were included in the filing that it submitted in January to the Federal Reserve. The bank’s split-adjusted shares will start trading on May 9.
Click here for the story from Financial Times.
Click here for additional coverage from Morningstar.