QAF Ltd has recently announced a Dividend Reinvestment Plan (DRIPS) for the financial year ended 31 December 2012 to allow its shareholders to reinvest their cash dividends by purchasing additional shares of the aforementioned company.  

In a normal circumstances like this, I usually prefer to receive the dividends in the form of cash option. I don't generally like to hold on to odd lot shares as I find it very difficult to remember and also to sell in the open market. However, what is attractive about the offer is that for investors who chose the DRIPS option, they will have the opportunity to purchase it at the issue price of S$0.891/share, which is about 7% discount to its current price of S$0.955.

Now, we are seeing more and more companies doing this in order to attract their investors to reinvest their dividends into the company in view ...