Citigroup Inc. said Monday it plans to reduce the number of outstanding common stock shares, and to reintroduce a dividend beginning in second quarter 2011.

The New York-based bank said it will shrink the number of common shares through a 1-for-10 reverse stock split, and reinstate a quarterly dividend, at 1 cent per share, in the second quarter.

The move reduces Citi’s outstanding common stock to 2.9 billion shares from 29 billion.

The reverse split will take effect after the close of trading on May 6.