Morgan Stanley says stick to quality in Asia for dividends

Stock selection is becoming increasingly important as cash-strapped companies cut dividend payouts to preserve capital, strategists including Gilbert Wong wrote in a report

HONG KONG: Stock pickers in Asia seeking to preserve dividend income should focus on high-quality companies rather than attempting to time the market to capture a rebound in economic activity, according to quantitative strategists at Morgan Stanley.

Stock selection is becoming increasingly important as cash-strapped companies cut dividend payouts to preserve capital, strategists including Gilbert Wong wrote in a report dated May 17.