On Wednesday financial services giant Citigroup Inc. (
) announced a number of steps to reposition the company to reduce
expenses and improve efficiency.
The New York, New York-based company is expected to take a $1
billion charge in the fourth quarter of 2012 in a repositioning
move. This action, along with a reduction of 11,000 jobs, is
expected to help generate $900 million in expense savings in 2013;
beginning in 2014 the moves are expected to exceed $1.1 billion in
Citigroup's Chief Executive Officer Michael Corbat said, "These
actions are logical next steps in Citi's transformation. While we
are committed to- and our strategy continues to leverage- our
unparalleled global network and footprint, we have identified areas
and products where our scale does not provide for meaningful
returns. And we will further increase our operating efficiency by
reducing excess capacity and expenses, whether they center on
technology, real estate or simplifying our operations."
Citigroup shares were up $1.06, or +3.09%, in premarket trading
on Wednesday. The stock is up +30.33% year-to-date.
The Bottom Line
Shares of Citigroup (
) have a .12% dividend yield, based on last night's closing stock
price of $34.29. The stock has technical support in the $30-$32
price area. If the shares can firm up, we see overhead resistance
around the $36-$39 price levels.
Citigroup Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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