Hunting for passive income is a favorite pastime for Singaporean investors, yet many stop their search at the market’s biggest names.
The SPDR STI ETF (SGX: ES3), which tracks the local benchmark index, offers a respectable 3.67% dividend yield as of January 2026.
However, sticking strictly to the blue-chip path means you might miss out on significantly higher payouts hidden in other sectors.
From specialized UK real estate to staple food manufacturers, there are opportunities to secure yields that comfortably outpace the broader market.
By venturing just a step beyond the Straits Times Index (SGX: ^STI), you can find businesses with the cash flow and resilience to supercharge your dividend portfolio.
Elite UK REIT (SGX: MXNU)
Elite UK REIT is currently a standout performer for income seekers, boasting a substantial 8.5% distribution yield at its £0.36 price point.
Its portfolio is uniquely resilient, consisting of 148 properties leased to the UK government, with 99.1% of rental income backed by AA-rated sovereign credit.
For the first nine months of 2025 (9M2025), revenue edged up 1.0% year on year (YoY) from £28.0 million to £28.3 million.
Net property income dipped 0.5% YoY to £27.4 million, reflecting expenses incurred for asset repositioning initiatives.
The REIT delivered a 9.4% increase in distribution per unit (DPU) to £0.023 for 9M2025.
This growth was fueled by positive rental reversions and effective capital management that kept borrowing costs at 4.8%.
The REIT isn’t just sitting on its laurels; it is aggressively transforming its portfolio to unlock value.
Management recently secured planning approval to convert a Dundee property into student accommodation, which could see a fivefold valuation uplift.
Other projects include potential data centre developments in Blackpool and further student housing in Cardiff.
Recent acquisitions of government-leased properties have already proven DPU-accretive while slightly lowering gearing.
For investors, Elite UK REIT offers a rare combination of government-backed stability and significant capital upside through these strategic repositioning initiatives.
QAF Limited (SGX: Q01)
QAF Limited, the name behind the iconic Gardenia brand, currently offers a dividend yield of 5.2% at S$0.96.
While the company faced headwinds in the first half of 2025 (1H2025) – including currency losses and high operating costs that squeezed net profit – the underlying business remains a cash-generating machine.
For 1H2025, QAF reported revenue of S$306.1 million, down 1% YoY from S$309.2 million, as softer consumer sentiment weighed on demand.
Profit attributable to owners plunged 69% YoY to S$3.9 million from S$12.5 million a year ago.
Despite the earnings pressure, free cash flow actually grew 13% to S$11.5 million during this period, and the balance sheet is rock-solid with S$162.4 million in net cash.
The company maintained its interim dividend of S$0.01, signaling confidence in its ability to navigate short-term pressures.
A major positive development arrived in December 2025 regarding its Malaysian joint venture, Gardenia Bakeries (KL).
Previously, a “winding up” clause created uncertainty if the venture wasn’t listed by 2028.
QAF has now successfully restructured its partnership with Tradewinds (M) Berhad, removing this clause and ensuring the business continues indefinitely.
This move effectively clears a major long-term risk and allows for the reversal of previous non-cash impairments.
With the Malaysian business secured and management focusing on operational efficiency and new product launches, QAF remains a defensive dividend play with a significantly improved risk profile.
Valuetronics Holdings Limited (SGX: BN2)
Valuetronics is successfully navigating a transition from traditional consumer electronics to high-margin industrial segments.
During the six months ending 30 September 2025 (1HFY2026), its Industrial and Commercial Electronics (ICE) division grew nearly 6%, now accounting for 84.5% of total revenue.
This strategic shift helped expand gross margins to 18.8%, even as total revenue dipped slightly (3.0% YoY) to HK$836.6 million due to the intentional phase-out of lower-margin consumer products.
Net profit attributable to owners rose 2.7% YoY to HK$93.0 million despite lower revenue.
Valuetronics provides a 4.9% dividend yield at S$0.90, bolstered by its practice of paying both interim and special dividends.
The group is finding significant growth in specialized niches like cooling solutions for high-performance computing and network-access products.
Furthermore, its consumer segment is being revitalized by demand for immersive entertainment technologies used in global theme parks.
Valuetronics’ diversified manufacturing base in Vietnam also serves as a critical hedge against global trade tensions for its North American clients.
Despite lower interest income following rate cuts and some startup losses in its AI joint venture, the core manufacturing business remains highly profitable.
For dividend investors, Valuetronics offers exposure to advanced manufacturing trends with a disciplined focus on profitability over pure volume.
Get Smart: Hunting Quality Beyond the Index
Yield is only one part of the equation; the ability to sustain those payouts is what matters most.
These three stocks demonstrate that by looking past the benchmark STI, investors can find higher yields backed by sovereign credit, essential consumer goods, and high-margin industrial manufacturing.
Each company is actively managing its path forward – whether through asset conversion, joint venture restructuring, or margin optimization – making them proactive choices for a robust and high-yielding income portfolio.
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Disclosure: Calvina Lee does not own any of the shares mentioned. Chin Hui Leong contributed to the article and does not own any of the shares mentioned.
