Everyone knows the hits dominating the charts – the blue-chip names that headline every portfolio.
Beneath the spotlight, a few quiet performers are offering dividend yields that are outpacing CPF Ordinary Account’s steady 2.5%.
Today, we’ll check out three companies which are bubbling under the STI Top 30, doing exactly that.
Boustead Singapore Limited (SGX: F9D)
This multi-industry conglomerate may have seen revenue contract 31% to S$527.1 million for the fiscal year ended 31 March 2025 (FY2025), but don’t let that fool you.
Profit attributable to shareholders surged 48% to S$95.0 million, demonstrating the value of operational efficiency and strategic portfolio management.
A S$28 million one-off gain from divesting its fund management business certainly helped, but the underlying strength lies in its Geospatial division, which delivered record operating profit of S$51.9 million on just 4% revenue growth, thanks to a favorable mix of high-margin products.
The balance sheet tells an even more compelling story.
With S$333.9 million in cash against minimal debt of S$7.9 million, Boustead sits on a net cash position of S$326.0 million.
This fortress balance sheet enabled management to raise total dividends by 36% to S$0.075 per share, including a special dividend of S$0.02.
At S$1.77, it offers a 4.2% dividend yield.
Looking ahead, new engineering contract wins of approximately S$377 million — more than double the prior year — suggests the revenue drought may be ending.
With an engineering order backlog of S$349 million providing visibility, management’s cautious optimism for FY2026 appears well-founded.
Micro-Mechanics (SGX: 5DD)
When the semiconductor cycle turns, suppliers like Micro-Mechanics feel it first.
The fiscal year ended 30 June 2025 (FY2025) proved this thesis, with revenue climbing 12.6% to S$65.2 million and net profit soaring 54.2% to S$12.4 million.
The real story is in the segment performance: while consumable tools grew a modest 5.7%, wafer fabrication equipment parts exploded 45.5% to S$14.8 million.
This wasn’t just a rising tide lifting boats.
Gross margins expanded to 49.4% from 47%, reflecting operational excellence initiatives taking hold.
The US subsidiary MMUS flipped from a S$2.2 million loss to S$1.2 million profit, a S$3.4 million swing that demonstrates management’s ability to turn around underperforming assets.
The Singapore-listed company maintains pristine financials with S$23.3 million in cash and zero debt.
While the board held total dividends steady at S$0.06 per share, free cash flow jumped 38.9% to S$16.8 million, suggesting room for future dividend growth.
At S$1.71, that’s a 3.5% dividend yield.
With the World Semiconductor Trade Statistics forecasting 9.9% market growth in 2026 and supply chain localization creating new opportunities, particularly in US advanced packaging, Micro-Mechanics is positioned to ride the next semiconductor upcycle.
The Hour Glass (SGX: AGS)
A familiar name in the luxury watch sector, which cooled from the pandemic-era frenzy, The Hour Glass demonstrated admirable resilience.
Revenue edged up 3% to S$1.16 billion for the financial year ended 31 March 2025 (FY2025).
Net profit, however, declined 13% to S$135.8 million, primarily due to lower associate contributions and investment property fair value adjustments rather than operational weakness.
The real testament to operational health?
Free cash flow improved 16% to S$129.9 million.
Management also strengthened the balance sheet, reducing bank borrowings from S$83.9 million to S$54.8 million while maintaining S$178.7 million in cash.
While total dividends fell from S$0.08 to S$0.06 per share, barely clearing the CPF OA hurdle, context matters.
As an authorised retailer for Rolex, Patek Philippe, and Audemars Piguet across more than 70 boutiques, The Hour Glass occupies a privileged position in an industry with high barriers to entry.
Management expects continued profitability despite ongoing macroeconomic headwinds, and the company’s premium brand relationships provide a moat that’s difficult to replicate.
Still, at S$2.08, its shares offer a 2.9% dividend yield.
For investors seeking exposure to high-net-worth consumer resilience with a dividend kicker, The Hour Glass offers a rare public market entry point into the rarefied world of luxury timepieces.
Get Smart: Balancing Higher Yields with Measured Risk
While the Straits Times Index (SGX: ^STI) heavyweights enjoy their time in heavy rotation, these under-the-radar companies show that solid balance sheets, steady cash flow, and disciplined management can quietly deliver good rewards as well.
But here’s the critical perspective: the CPF OA’s 2.5% may not sound like much, but it comes with the Singapore government’s backing, where returns are virtually guaranteed and your capital is protected.
Buying into stocks, even quality names like these three, offers higher potential yields but introduces genuine risk.
The better approach isn’t choosing one over the other, it’s thoughtful allocation – balancing the enhanced yield potential against their personal risk tolerance and investment horizon
Look beyond brand recognition to find quality businesses delivering returns that matter, but never forget that higher returns always come with the responsibility of managing higher risk.
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Disclosure: Calvina Lee does not own shares in any of the companies mentioned.
