The week of 11 May 2026 sees three Singapore-listed companies paying dividends to shareholders.
All three sit on net cash.
All three generated positive free cash flow in FY2025.
Yet, one raised its payout, one is making its first full-year distribution as a newly listed company, and one cut its dividend.
For dividend investors, the contrast is instructive.
Strong cash generation is necessary, but it does not guarantee a rising payout.
The direction of the dividend often reveals what management sees in the quarters ahead.
Frencken Group (SGX: E28) — Pays 14 May 2026
Frencken Group, a global integrated technology solutions provider serving the semiconductor, analytical life sciences, medical, automotive and industrial automation segments, is the strongest case in this trio.
For FY2025, revenue rose 8.9% year on year (YoY) to S$865.1 million, while net profit attributable to shareholders climbed 5.4% to S$39.1 million.
Gross margin held broadly steady at 14.3%, compared with 14.5% a year earlier.
The cash story is more striking.
Free cash flow more than doubled to S$83.8 million, up from S$34.9 million, on improved working capital management.
The group ended the year with S$161.9 million in cash against just S$22.3 million of borrowings (excluding lease liabilities), placing it in a net cash position of S$139.6 million.
Operationally, the Mechatronics Division did the heavy lifting, with revenue up 10.2%.
The semiconductor segment grew 16.7% and industrial automation jumped 48.6%, more than offsetting an 8.1% decline in analytical life sciences.
Finance costs fell 21.9% on lower borrowings.
On the back of this performance, Frencken raised its final dividend to S$0.0275 per share, up from S$0.0261.
Management guided to broadly flat 1H2026 revenue but higher net profit, with the semiconductor segment remaining a key driver and the APS Division’s automotive radar antenna solutions potentially reaching an inflection point as the ADAS market gathers pace.
Info-Tech Systems — Pays 15 May 2026
Info-Tech Systems, a Singapore-based SaaS provider serving SMEs across Singapore, Malaysia and other regional markets, is the growth case.
Its FY2025 distribution is the first full-year payout since listing.
Revenue rose 29% YoY to S$56.5 million, led by stronger Academy training revenue in the second half and continued subscription growth.
Profit attributable to owners climbed 22% to S$15.0 million, despite absorbing roughly S$2.9 million of one-off IPO listing and Malaysia office relocation costs.
Adjusted for those items, profit would have grown 46% to S$18.0 million.
The balance sheet is pristine.
Cash and equivalents reached S$67.3 million, up from S$29.7 million, boosted by net IPO proceeds.
The group carries no interest-bearing debt, only S$4.0 million in lease liabilities.
The board declared a second interim dividend of S$0.0155 and proposed a final dividend of S$0.0195, bringing total FY2025 dividends to S$0.035 per share – equivalent to 60% of reported profit, or 50% on an adjusted basis.
One watch item: free cash flow dipped to S$15.7 million from S$17.6 million on a receivables build-up and higher capex.
Forward catalysts include a new CRM product launched in February 2026, expanded Academy training facilities at Bendemeer and Jurong, and a newly incorporated Dubai subsidiary to support Middle East expansion.
Delfi (SGX: P34) — Pays 15 May 2026
Delfi, the Singapore-listed chocolate confectionery group behind Indonesian brands SilverQueen, Ceres and Delfi, is the cautionary case.
For FY2025, revenue dipped 0.5% YoY to US$500.1 million, while net profit eased 2.1% to US$33.2 million.
On the surface, the cash story looks excellent: free cash flow surged to US$69.9 million, up from US$24.7 million, on disciplined working capital management and significantly lower capital expenditure.
The group ended the year in a net cash position of US$53.5 million.
Yet Delfi cut its dividend.
The proposed final of S$0.0215, together with the earlier interim of S$0.0128, brings FY2025 total dividends to S$0.0343 per share, down from S$0.0429.
Why the disconnect?
The operating picture was softer than the FCF suggests.
Gross margin contracted by 0.9 percentage points to 26.5%, pressured by a weaker Indonesian Rupiah, higher promotional spending, and lower Agency Brand margins.
Own Brands grew 4.9% on promotional investment, but Agency Brands fell 7.4% after one agency brand was terminated.
Management noted that while cocoa prices have weakened from previous peaks, the Indonesian macroeconomic landscape remains uncertain.
Get Smart: Read the dividend direction, not just the FCF
While we often say “free cash flow is the lifeblood of dividends”, it is not the whole story.
All three companies comfortably cleared the FCF and net cash hurdle.
Only Frencken raised its dividend, on the back of strengthening end-markets and rising profit.
Info-Tech is paying out generously as a newly listed growth company, with ample headroom but a watchful eye on working capital.
Delfi’s healthy FCF masks margin pressure and currency headwinds, and the dividend cut reflects management’s caution.
The direction of the payout is itself a signal worth listening to.
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Disclosure: Calvina L. does not own shares in any of the companies mentioned. Chin Hui Leong contributed to the article and does not own shares in any of the companies mentioned.
