* Q2 operating EPS $0.26 vs est $0.26
* Says board adopts a quarterly dividend policy
* Declares dividend of 5 cents a share
* Says to repurchase of $70 million of common shares
July 29 (Reuters) - Boutique investment bank KBW Inc KBW.N posted second-quarter operating profit in line with analysts estimates and said it will pay dividend and buy back shares.
The company said its board has adopted a quarterly dividend policy and declared a cash dividend of 5 cents a share.
A share buyback of $70 million of its common shares has also been approved by the board, the company said.
The investment bank, which specializes in financial services sector, said quarterly profit was $8.2 million, or 22 cents a share, compared with $7.2 million, or 20 cents a share, a year ago.
The company reported operating earnings of 26 cents a share.
Analysts on average were expecting earnings of 26 cents a share, excluding items, according to Thomson Reuters I/B/E/S.
Investment banking revenue rose 45 percent to $61.2 million.
Shares of the company closed at $22.83 Wednesday on the New York Stock Exchange.
Reporting by Archana Shankar in Bangalore; Editing by Prem Udayabhanu