Walking into a confectionery shop is a lot like browsing the Singapore stock market. You have the “sugar rush” stocks – high-yielders that look tempting but often lead to a nasty crash.
Then you have the “slow-bake” growth stocks – healthy and promising, but they often leave you waiting years for a single bite of income.
The “Sweet Spot” in investing is that rare, perfect recipe: a stock that offers the immediate gratification of a steady dividend, the rich filling of business stability, and a topping of long-term growth.
As we look at the corporate landscape in 2026, three Singaporean stocks stand out for hitting the sweet spot for income investors.
Sheng Siong (SGX: OV8) – The Heartland Cash Machine
When it comes to stability, few can rival the local grocery giant Sheng Siong.
Specializing in fresh produce and household essentials for Singapore’s heartlands, the group has turned the “boring” business of supermarkets into a high-performance engine.
In the nine months ended 30 September 2025 (9M2025), Sheng Siong proved that its growth story is far from over:
Revenue rose 9.5% year on year (YoY) to S$1.2 billion, fueled by nine new store openings and a 1.5% increase in comparable same-store sales.
Gross margins improved to 31.1%, thanks to a better sales mix.
Net profit grew 6.5% to S$116.1 million, but more importantly, free cash flow surged by 14.9% to S$162.4 million.
Sheng Siong’s balance sheet is its fortress – boasting S$393.7 million in cash and zero debt.
While the 9M2025 dividend remained steady at S$0.064 per share, the group’s aggressive expansion (reaching 90 stores by late 2025) suggests that as these new outlets mature, the cash pile will only grow.
For investors, this represents a defensive play that continues to take market share.
Raffles Medical Group (SGX: BSL) – The High-Margin Healer
Raffles Medical Group (RMG) has long been a staple for those seeking exposure to the aging population and the rise of medical tourism in Southeast Asia.
2025 marked a year where the group focused on “quality over quantity,” optimizing its operations to boost the bottom line.
For the first half of 2025 (1H2025), RMG reported a steady 3.5% increase in revenue to S$378.4 million.
However, the real story lay in the margins: revenue from Hospital Services grew 3.8%, but segment profits surged by 24.3%, showing the power of high-intensity, specialized medical services.
Free cash flow jumped an incredible 139.4% to S$52.0 million, primarily due to lower capital expenditure and strong operating cash generation.
RMG maintains a conservative financial profile with S$334.2 million in cash and minimal debt.
While they don’t pay an interim dividend, their FY2024 payout of S$0.025 provides a solid base.
With operating losses in their Insurance segment narrowing by over 50%, RMG is leaning into a leaner, more profitable future that supports sustainable long-term payouts.
Singapore Exchange (SGX: S68) – The Monopoly with a Growth Engine
As the sole stock market operator in Singapore, Singapore Exchange (SGX) is the definition of a “moat”.
However, in recent years, it has transformed from a local stock exchange into a global multi-asset powerhouse.
For the fiscal year ending 30 June 2025 (FY2025), the blue-chip bourse operator delivered a standout performance.
Net revenue hit S$1.298 billion, up 11.7% YoY.
While cash equities performed well (up 26.5%), the FICC (Fixed Income, Currencies, and Commodities) segment stole the show.
Currency derivative volumes surged 54.1%, proving SGX is now a global FX hub.
Net profit rose 8.4% to S$648 million, allowing the Board to increase the total FY2025 dividend to S$0.375 per share (up from S$0.345).
SGX offers something rare: a monopoly business with a clear dividend roadmap.
Management has guided for a S$0.0025 quarterly dividend increase from FY2026 through FY2028, providing investors with a rare level of visibility and a “built-in” growth rate for their income.
Get Smart: The Power of the Trio
Investing in the “Sweet Spot” isn’t about chasing the highest yield on the screen – it’s about finding businesses that can pay you while they grow.
Sheng Siong provides the defensive floor; people need to eat regardless of the economy.
Raffles Medical provides the structural growth of healthcare.
SGX provides the “toll-gate” income from global financial flows.
By combining these three, an investor creates a diversified income stream backed by rock-solid balance sheets and clear competitive advantages.
In the world of investing, that is a recipe for a good night’s sleep.
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Disclosure: Calvina Lee owns shares of SGX.
