Financial giant Citigroup Inc. (NYSE: C) announced a 1-for-10 reverse stock split of its common stock and plans to reinstate a quarterly dividend of $0.01 per common share in the second quarter of 2011, following the effective date of the reverse stock split.

Citi anticipates the reverse stock split will be effective after the close of trading on May 6, 2011, and that its common stock will begin trading on a split adjusted basis on the New York Stock Exchange (NYSE) at the opening of trading on May 9, 2011.

The reverse stock split is expected to reduce the number of outstanding shares of Citigroup common stock to about 2.9 billion from about 29 billion.

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

Shares of Citigroup were up 7 cents to $4.57 in Monday morning trade on the NYSE.