Legg Mason ( LM) shares recovered some of Monday's steep loss after the company Tuesday declared a 3-for-2 stock split and raised its quarterly dividend by 50%. Legg shares rose $4.18, or 5.53%, to $79.73 in very heavy trading. Volume was 1.28 million shares, about 3.5 times the average daily volume of 356,636. Shares fell 9% Monday after the Baltimore-based investment services company reported second-quarter earnings of $1.14 a share, or 9 cents less than analysts' expectations of $1.23. The split is effective Sept. 24 to shareholders of record as of the close of business on Sept. 8. The company's board also approved a quarterly cash dividend of 15 cents a share on a split-adjusted basis. The dividend is payable Oct. 25, 2004, to stockholders of record on Oct. 7, 2004. This marks the 24th consecutive year of dividend increases to Legg Mason stockholders.