Legg Mason Up on Split, Dividend

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.

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