PETALING JAYA: Shareholders are more inclined to opt for dividend reinvestment plans (DRIPs) offered by quality companies, which have low gearing and strong results, and see a further upside in share prices of these companies.
Analysts say companies with low gearing and strong earnings would have good dividend policies and DRIPs would allow shareholders to reinvest their monies (dividend payouts) into a stable company as oppose to thinking of an alternative investment tool for the dividend payouts.
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