Source: The Associated Press

Online brokerage TD Ameritrade says its profit fell 27% in its fiscal fourth quarter as trading activity slowed and revenue declined.

The results came up short of Wall Street expectations.

But the Omaha-based company (Nasdaq:AMTD) says it will initiate a dividend of 5¢ per share. Its shares dropped 40¢ to US$16.35 in pre-market trading.

TD Ameritrade Holdings Corp. reported net income of US$114 million, or 20 cents per share during the three months ended Sept. 30. That’s down from US$157 million, or 26 cents per share, a year ago.

Ameritrade says its revenue fell nearly 8% to $609 million.

Analysts surveyed by Thomson Reuters expected quarterly earnings per share of 23 cents on revenue of $619.2 million on average.

TD Bank Financial Group (TSX:TD), which owns 40% of Ameritrade, said the brokerage would contribute $33 million to the bank’s fourth-quarter net income, within the wealth management segment.