Dividend investors often fixate on yield.
But yield alone can be misleading – a high payout means little if the company behind it is drowning in debt or burning through cash.
The more telling combination is a clean balance sheet paired with a rising dividend.
When a company carries zero debt and sits on a sizable cash reserve, its dividend doesn’t just survive economic turbulence – it has room to grow.
Here are three SGX-listed stocks that tick both boxes.
HRnetGroup Limited (SGX: CHZ)
HRnetGroup is a leading recruitment and staffing firm operating across 18 Asian cities.
The group’s Flexible Staffing segment accounts for nearly 90% of revenue, while Professional Recruitment punches above its weight, contributing 45.2% of gross profit from just 9.6% of revenue.
For FY2025, revenue rose 3% year on year (YoY) to S$584.0 million, supported by a 5.6% increase in average monthly contractors to 16,421.
Profit attributable to owners climbed 15% to S$51.2 million, boosted by tight cost discipline and a S$6.9 million jump in other income from fair value gains on financial assets and gold.
More importantly for dividend investors, the group churned out S$52 million in free cash flow, up 5.3% YoY.
That cash generation sits atop a fortress of a balance sheet: S$262.9 million in cash and zero debt.
To put that in perspective, the cash pile alone could theoretically cover more than five years of dividend payouts at current levels.
HRnetGroup declared a total dividend of S$0.042 for FY2025, 5% higher than the S$0.040 paid a year earlier.
With this kind of financial cushion, the balance sheet doesn’t just support the dividend – it underwrites it.
Credit Bureau Asia Limited (SGX: TCU)
Credit Bureau Asia (CBA) provides credit and risk information to banks, financial institutions, and government bodies across Southeast Asia.
Its Financial Institution (FI) Data business runs credit bureaus in Singapore, Cambodia, and Myanmar, while its Non-FI Data segment offers commercial risk management solutions through a partnership with Dun & Bradstreet.
FY2025 was a softer year operationally.
Revenue edged up just 0.7% to S$60.1 million, while profit attributable to owners dipped 4.4% to S$10.7 million, weighed down by lower interest income, reduced contributions from its Cambodia joint venture, and higher employee compensation costs.
Free cash flow came in at S$27.2 million, down 4.9%.
Yet the board still raised the dividend.
The total payout for FY2025 came in at S$0.042 per share, up from S$0.040 a year ago.
What gave management that confidence?
A debt-free balance sheet with S$46.5 million in cash and a further S$24.7 million in short-term financial assets (treasury bills and money market funds), bringing total liquid assets to S$71.1 million.
That is more than six times the group’s annual net profit, providing an extraordinary cushion.
On the brighter side, its FI Data segment grew 3.0% to S$28.0 million on the back of higher credit applications and monitoring services — recurring, non-discretionary demand that quietly underpins the dividend story.
Sometimes, the most revealing thing about a dividend increase isn’t the size of the raise – it’s the circumstances under which the board chose to make it.
VICOM Ltd (SGX: WJP)
VICOM is Singapore’s leading provider of vehicle testing and inspection services and a subsidiary of ComfortDelGro Corporation Ltd (SGX: C52).
Beyond vehicle inspections, the group offers mechanical, civil engineering, and non-destructive testing through its Setsco subsidiary.
For FY2025, VICOM declared a total dividend of S$0.084 per share, a substantial 44.8% increase from the S$0.058 paid in FY2024.
The dividend increase was underpinned by a bumper year driven largely by ERP 2.0 On-Board Unit (OBU) installations.
The momentum has carried into 2026.
For the first quarter, revenue surged 11.5% YoY to S$37.2 million, while net profit jumped 33.6% to S$10.0 million.
The operating margin expanded sharply from 27.0% to 32.4%, showcasing the operating leverage inherent in a high-fixed-cost testing business.
VICOM’s balance sheet remains pristine, with S$59.9 million in cash and zero debt as at 31 March 2026.
The group is also investing in its next growth chapter – elevated capital expenditure of S$11.6 million in 1Q2026 relates to the development of an integrated testing centre at Jalan Papan.
Crucially, VICOM is funding this expansion entirely from its own resources, without taking on a single dollar of debt.
Dividend investors should note that ERP 2.0 OBU installations are winding down, which may temper revenue growth ahead.
But with a debt-free balance sheet and a new testing facility coming on stream in the second half of 2026, VICOM is positioning itself for the next phase of growth – on its own terms.
Get Smart: A clean balance sheet is a dividend’s best friend.
HRnetGroup, Credit Bureau Asia, and VICOM each carry zero debt and sit on substantial cash reserves – a combination that gives their boards the confidence to raise payouts.
HRnetGroup’s cash hoard could cover more than five years of dividends on its own.
CBA raised its payout even as profits softened.
And VICOM is investing in its next growth chapter without borrowing a cent.
For income-seeking investors, these three stocks demonstrate why the balance sheet deserves as much attention as the yield.
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Disclosure: Calvina L. does not own shares of any companies mentioned. Chin Hui Leong contributed to the article and owns shares of HRnetGroup, CBA and VICOM.
