Cash is King – everyone is undoubtedly familiar with this saying.
But did you know it rings true for corporations?
Especially in today’s volatile economic climate, having a strong cash position is of paramount importance.
In this piece, we spotlight five companies that boast strong cash balances: Sheng Siong Group Ltd (SGX: OV8), Wee Hur Holdings Ltd (SGX: E3B), Propnex Ltd (SGX: OYY), Raffles Medical Group Ltd (SGX: BSL), and Riverstone Holdings Ltd (SGX: AP4).
What Defines a “Cash-Rich, Rock-Solid” Company?
What makes a company cash-rich and well-positioned?
First, a company ought to have a net cash position (more cash than debt), as it allows a company to maintain dividend payments even during downturns and lowers financial risk.
Second, companies with a history of paying stable or increasing dividends can only do so if they can generate strong free cash flow.
Typically, these companies have predictable business models with recurring streams of income, operate in defensive sectors or have diversified business lines.
Finally, management has to be smart about allocating capital with prudent capital spending, disciplined cost management and the adoption of conservative leverage ratios.
Sheng Siong Group Ltd (SGX: OV8): Slow and Steady Compounding
Sheng Siong’s essential groceries business allowed it to grow its free cash flow (FCF) at an impressive compound annual growth rate (CAGR) of 18.3% over the last decade, to S$221.9 million as of the last 12 months (LTM).
Shareholders have been rewarded a consistent dividend over the last decade.
Its latest interim dividend of S$0.032 per share puts Sheng Siong’s annualised yield at 2.4%(at a share price of S$2.63).
Electing to fund its operations and expansion solely through internally generated cash flow, Sheng Siong has a pristine balance sheet, boasting S$393.7 million in net cash.
Looking ahead, management is focused on slowly adding new stores in Singapore and China (Kunming).
With its conservative management of capital and the steady humming of its essential business, Sheng Siong is expected to continue growing revenue, cash flows – some of which will be returned to shareholders via increasing dividends (usually paying out 70% of profits).
However, investors should watch out for high inflationary costs, which would eat into Sheng Siong’s margins.
Wee Hur Holdings Limited (SGX: E3B): Construction Exposure with Stable Recurring Income
Riding the construction boom in Singapore, Wee Hur’s future growth looks bright.
The company recently secured two HDB construction contracts (worth around S$439.4 million), due to be completed between 2028 and 2029.
Alongside steady recurring income from the management of workers’/students’ dormitories, Wee Hur is well-poised to grow its earnings and cash flows sustainably.
Wee Hur has a solid history of paying consistent dividends since 2020.
For 2024, Wee Hur paid a dividend per share of S$0.01 (17% payout ratio), yielding roughly 1.4%.
The board declared an interim dividend of S$0.005 per share for 2025, which was paid to shareholders on 5 September 2025.
Underpinned by a robust balance sheet with a net cash balance of S$99.1 million , coupled with its ability to generate solid operating cash flow (S$57.5 million for the six months ended June 2025), means Wee Hur is likely to keep its dividend-paying streak going.
Gearing is low at 22%.
Wee Hur’s main risks include higher inflationary costs (raw material + labour), which would impair its construction margins and higher interest rates, which might dampen appetite for its property development business.
PropNex Ltd (SGX: OYY): Property Exposure with zero debt
PropNex is the premier real estate service company in Singapore, boasting the most property agents in the country.
PropNex’s investment in its technology stack, as well as a relentless focus on providing comprehensive training to its agents, allows the company to capture the lion’s share of property transactions in Singapore.
PropNex is efficient at generating profits, with a return-on-equity (ROE) ratio of 43.8% between 2020 and 2024.
Impressively, PropNex generates consistent FCF, averaging S$54.1 million over the same period.
PropNex has a cash position of S$136.8 million and no debt.
Management has a shareholder-friendly capital approach, rewarding shareholders with consistent annual dividends (since listing), alongside special dividends from time to time.
Its latest interim dividend of S$0.05 per share is the highest interim dividend paid, with a LTM yield of 4.2% (excluding special dividends).
Looking forward, PropNex could be the one of the beneficiaries of falling interest rates and resilient property transaction demand/values.
Operating cash flow for the six months ending June 2025 was S$45.3 million, an increase of S$29 million from a year ago, which should sustain dividend growth moving forward.
PropNex’s main risks include rising interest rates, an economic slowdown, or regulatory changes, which could reduce property transaction values/demand.
Raffles Medical Group (SGX: BSL): Healthcare Provider with a Giant Net Cash Position
The provider of a plethora of medical-related services in Singapore and across Asia, Raffles Medical boasts an impressive dividend history: the group has paid a consistent annual dividend for the past 15 years.
Its latest final dividend of S$0.025 per share offers a yield of approximately 2.5%. Management is committed to distributing at least 50% of earnings annually.
The essential nature of healthcare services allows the group to produce consistent free cash flow regardless of market cycles, with FCF averaging S$118.3 million between 2020 and 2024.
With a robust net cash position of S$283 million, combined with growth initiatives such as strengthening its presence in China and the tailwind of an ageing population, expect consistent and increasing dividends from Raffles Medical.
Key risks include operational cost overruns, execution challenges in the Chinese market expansion, and exposure to foreign exchange volatility.
Riverstone Holdings Limited (SGX: AP4): Healthcare provides Stability, with an AI growth angle
Since listing, Riverstone Holdings Limited has never missed an annual dividend, and it boasts a LTM dividend yield of 4.7%.
Its healthcare business (gloves and personal protective equipment) provides a resilient base to generate sustainable FCF, averaging around RM 540 million between 2020 and 2024, consistently across market cycles.
Its net cash position of roughly RM$660.9 million, combined with its FCF generation ability, allows the payment of a sustainable, modestly growing dividend over the years.
Looking ahead, its cleanroom glove business (protects semiconductors from contamination and corrosion) is expected to drive future earnings owing to the growing AI trend.
Riverstone operates in a highly competitive industry that is severely prone to higher inflationary costs.
Get Smart: Strong Balance Sheets Build Strong Returns
These five cash-rich companies have pristine balance sheets, displayed dividend stability or growth across multiple years.
They possess resilient business models that offer income investors safe, reliable dividends, with potential for decent growth, helping you build wealth over time.
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The world’s gotten unpredictable, but some Singapore companies have quietly kept thriving. You’ve probably seen them in your daily life. And yes, they’ve kept paying dividends through it all. Meet 5 resilient stocks built to navigate global storms. Get the free report here and see how they’ve done it.
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Disclosure: Wilson.H does not own shares in any of the companies mentioned.
