(By Mayur Pahilajani - iStockAnalyst Writer)

Cleveland, OH - Shares of National City Corporation (NYSE: NCC) jumped by another 10 percent in pre-market trading on Thursday, trailing the gains from its rally in the previous session.

Early Thursday, the company announced that it will pay a cash dividend on its common stock in the amount of $.01 per share. In addition, the bank will also pay a cash dividend on its Series F preferred stock in the amount of around 62 cents per depositary share.

The statement from the Cleveland, Ohio-based bank said all dividends will be distributed on November 3 to stockholders of record as of October 13, 2008.

The exposure to mortgage-related losses of one of the nation's largest financial holding companies is less that its peers in the sector. National City Chairman, President and CEO Peter E. Raskind recently reiterated that his bank has no exposure to Lehman Brothers Holdings Inc., which has filed for Chapter 11 bankruptcy protection last month.

"With the $7 billion capital raise earlier this year and the highest Tier 1 capital ratio among large banks in the U.S., we have the necessary flexibility to address current market challenges," Raskind said in September during a shareholders' meeting.

Shares of the company surged by 65.14 percent, or $1.14, to $2.89 on Wednesday as the U.S. Senate passed "sweetened" $700 billion financial-rescue plan by a 74-25 vote. It closed at $1.75 on September 30. The stock of the company, which has a dividend yield of 1.38 percent, has traded between a low of $1.25 and a high of $27.21 in the last 52-week period.

Last month, the Bush administration had requested the members of the Senate and the House to approve the legislation allowing authorities to purchase billion-dollar worth distressed mortgage assets. The proposal also included to raise the statutory limit on the national debt to $11.3 trillion from $10.6 trillion.

The Senate voted in favor of the bill after receiving temporary increase the cap on federal deposit insurance to $250,000 from $100,000. The House Republicans also asked to extend tax breaks for two years, which is aimed to benefit individuals and companies. The tax breaks will save the individual and corporate tax payers as much as $149 billion over the next 10 years.

The U.S. House of Representatives is expected to vote again on Friday.

Source: http://phx.corporate-ir.net/phoenix.zhtml?c=64242&p=irol-newsArticle&ID=1204849&highlight=