Online brokerage TD Ameritrade says its profit fell 27 percent 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 says it will initiate a dividend of 5 cents per share. Its shares dropped 40 cents to $16.35 in pre-market trading.

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

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

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