Morgan Stanley Dean Witter

(MWD)

on Tuesday reported fourth-quarter earnings and revenue that were down from a year ago and fell short of analysts' expectations.

For the full year, the securities and brokerage firm posted record net income that rose 14% above year-ago levels but that, nevertheless, didn't meet analysts' expectations.

Morgan Stanley earned $1.06 per share in the fourth quarter on revenue of $5.7 billion. Fifteen analysts surveyed by

First Call/Thomson Financial

were expecting fourth-quarter earnings of $1.29 a share. Revenue of $5.7 billion was equal to last year's fourth quarter, but net income of $1.208 million was down 26% from the year-ago quarter.

The firm blamed the decline on weak results in its fixed income and private equity businesses and on "unusual compensation pressure" in institutional securities. "We are disappointed with the decline in our operating margins," the company said in a statement.

For the full year, Morgan Stanley reported earnings per share of $4.73 on revenue of $26.4 billion. Analysts had forecast full-year earnings of $4.98 per share.

The company also announced a 15% increase in its quarterly dividend to 23 cents per share from 20 cents. The dividend is payable Jan. 20, 2001 to shareholders of record on Jan. 12.