A high dividend yield can catch your eye, but it takes a strong balance sheet to give you peace of mind.
As of 5 February 2026, the Straits Times Index (SGX: ^STI) offers a dividend yield of 3.56%.
For income-seeking investors, the good news is that several Singapore-listed companies not only offer higher yields but also sit on sizable net cash positions – a combination that bodes well for dividend sustainability.
Here are three cash-rich Singapore stocks worth a closer look.
HRnetGroup (SGX: CHZ)
HRnetGroup is a leading recruitment and staffing firm operating across 18 Asian cities with over 900 consultants. Built over 33 years, the group runs 20 brands spanning Professional Recruitment and Flexible Staffing.
The headline number for dividend investors is the group’s debt-free balance sheet, which held S$311.7 million in cash and treasury bills as of 30 June 2025.
That cash pile comfortably underpins the human resource specialist’s interim dividend of S$0.020 per share for 1H2025.
Operationally, HRnetGroup delivered steady results for 1H2025.
Revenue rose 3.4% year on year (YoY) to S$295.5 million, driven by the Flexible Staffing segment which grew 4.1% to S$265.8 million on the back of 3.7% contractor volume growth.
More importantly, free cash flow surged by over 54% YoY to S$26.5 million, demonstrating the group’s ability to convert earnings into cash.
That said, the 29.2% YoY jump in net profit to S$28 million was aided by S$8.7 million in government grants and S$2.9 million in unrealised revaluation gains — items that may not recur.
Meanwhile, its Singapore market, which accounts for 63.7% of revenue, saw a 1.2% decline amid a softer hiring climate.
At S$0.74, shares offer a dividend yield of 5.6%.
HRnet typically reports its full year earnings in late February.
QAF Limited (SGX: Q01)
QAF Limited is a Singapore-based food manufacturer and distributor operating across Southeast Asia and Australia, with core segments in Bakery and Distribution & Warehousing.
For dividend investors, QAF’s balance sheet tells a reassuring story.
The company held S$162.4 million in net cash as of 30 June 2025, comprising S$188.6 million in cash against just S$6.9 million in total debt.
That fortress-like position allowed QAF to maintain its interim dividend of S$0.01 per share, unchanged from the prior year.
The dividend held steady despite a challenging 1H2025.
Profit attributable to owners plunged 69% YoY to S$3.9 million, weighed down by foreign currency translation losses of S$3.0 million, a S$1.9 million impairment on its Malaysian joint venture, and higher operating costs.
Here’s the silver lining: free cash flow improved 13% YoY to S$11.5 million, supported by lower capital expenditure.
Revenue dipped just 1% to a little over S$306 million, suggesting the underlying business remains intact even as headline profits took a hit.
Management expects the tough environment to persist, with a focus on product mix adjustments and operational efficiency to navigate the headwinds.
At S$0.98, QAF shares offer a dividend yield of 5.1%.
VICOM Ltd (SGX: WJP)
VICOM is a leading provider of inspection and technical testing services in Singapore, operating across Vehicle Testing and a broader suite of testing services for the mechanical, civil, and biochemical sectors.
The company’s balance sheet is spotless, with S$42 million in cash and no debt as at 30 September 2025.
While VICOM’s dividend yield of 3.6% barely edges past the STI’s, the growth trajectory here is what sets it apart.
For 3Q 2025, revenue surged 36% YoY to S$41.6 million, while net profit jumped 45% to S$9.9 million.
The strong performance was primarily driven by the Electronic Road Pricing (ERP) 2.0 On-Board Unit (OBU) installation project, with over 78,000 units installed during the quarter.
Free cash flow for the quarter was negative S$2.5 million due to S$12.3 million in capital expenditure for the new Jalan Papan integrated testing centre.
However, for the nine months ended September 2025, free cash flow remained positive at S$3.5 million.
The key point for dividend investors is this: with the Jalan Papan site expected to be operational in the first half of 2026, capital expenditure should normalise thereafter, potentially leading to improved cash generation and higher dividends from FY 2026 onwards.
VICOM will be reporting its full year earnings on 20 February 2026.
Get Smart: Cash is king for dividend safety
A high dividend yield is attractive, but it means little if the company lacks the financial strength to sustain it.
All three companies featured here share a common trait — net cash positions that provide a margin of safety for their dividends.
HRnetGroup and QAF offer yields above 5%, backed by debt-free or near debt-free balance sheets.
VICOM’s yield is more modest today, but its growth trajectory and upcoming earnings release could signal stronger payouts ahead.
For dividend investors, the lesson is clear: look beyond the yield and check the balance sheet.
A company that can fund its dividends without borrowing a single dollar is one that can weather uncertain times with confidence.
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Disclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and owns shares of VICOM.
