Citigroup (NYSE:C) Ready to Initiate Reverse Stock Split?

With the next quarterly report of Citigroup (NYSE:C) not far away, Barclays wonders out loud if Citi is ready to split the stock at the time of their fourth quarter report.

Barclays said, "We expect C to report 4Q10 EPS of $0.08, in line with the current $0.08 consensus. Note every $400 million change in C's pre-tax income equates to about $0.01 of EPS, so it's relatively more difficult to move the needle. With the government now out of its common equity stake, we wonder if C announces its long awaited reverse stock split in conjunction with 4Q10 earnings.

"We look for C to comment broadly on the direction credit costs will trend in 2011 and to provide anecdotal commentary on the loan demand environment. It should reiterate its stance on starting to return capital to shareholders in 2012. Finally, we look for an update on the expected pace of its asset run-off in Holdings."

Barclays maintains an "Overweight" on Citigroup, which closed Tuesday at $4.94, up $0.03, or 0.61 percent. Barclays has a price target of $6 on Citi.

Freeport-McMoRan (NYSE:FCX) Splitting Stock, Paying Special Dividend

Diversified miner Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) pushed up today on news they're splitting the stock and offering a special dividend of $1 a share.

The company will pay out $471 million in special dividends, and have a 2-for-1 stock split.

With a number of different economic factors making it difficult to project revenue and earnings in the short term, a number of companies have been opting for special dividends as a way to give back money to shareholders in a managed way.

In October they raised their annual dividend to 67 percent after strong earnings in the third quarter, led by higher prices for copper and molybdenum.

Shareholders or record as of December 20 will be paid the special dividend of $1 a share on December 20. That will be in addition to the existing $2 a share the company pays out in an annual dividend.

The stock split is scheduled for February 1, and will be applied to shareholders of record as of January 15. Outstanding share will rise from 471 million to 924 million after the event.

Freeport was trading at $110.36, up $1.76, or 1.62 percent, as of 12:56 PM EST.