While investors chase Singapore’s blue-chip darlings, a select group of cash-rich companies is quietly delivering 5% or more dividend yields.
What makes these companies particularly attractive for dividend investors?
Strong cash reserves provide a cushion to maintain payouts even during earnings volatility, reducing the risk of dividend cuts when business conditions soften.
These lesser-known businesses may not carry the prestige of a Straits Times Index (SGX: ^STI) listing, but their strong balance sheets, proven operational track records, and disciplined capital management make them compelling income plays in their own right.
Today, we dive into a trio of cash-rich Singapore stocks delivering dividend yields of 5% or more, rewarding patient investors willing to look beyond the index.
QAF Limited (SGX: Q01)
QAF Limited won’t win awards for earnings growth right now, but it’s got something dividend investors care about: a fortress balance sheet and the willingness to keep paying out.
The company manufactures and distributes bakery products across Southeast Asia and Australia, with operations spanning bread, confectionery, logistics, and a 50% stake in Malaysia’s Gardenia Bakeries joint venture.
Cash is king here.
QAF sits on net cash of S$162.4 million as of 30 June 2025, comprising S$188.6 million in cash against total debt of S$6.9 million (excluding lease liabilities).
That’s a comfortable war chest for a company navigating choppy waters.
And choppy it is.
For the first half ended 30 June 2025 (1H2025), revenue dipped 1% year on year (YoY) to S$306.1 million, while net profit plunged 69% YoY to S$3.9 million.
Foreign exchange losses, rising lease costs, and asset impairments all took their toll.
Weak consumer sentiment didn’t help either.
Despite this, free cash flow improved 13% to S$11.5 million, thanks to lower capital expenditure.
The company declared an interim dividend of S$0.01 per share for 1H2025, unchanged from the previous year.
At S$0.90 today, shares offer a 5.6% dividend yield, backed by that hefty cash pile.
Management isn’t sugar-coating the outlook – they expect the challenging environment to persist in the near term, with high operating costs and weak consumer demand continuing to pressure margins.
To mitigate these challenges, QAF will focus on product innovation, better mix management, and operational tweaks, while leaning on its strong balance sheet.
This is a bread-and-butter dividend play in every sense – no-frills, defensive, and built for income seekers who value cash cushions over growth thrills.
Valuetronics (SGX: BN2)
Valuetronics isn’t a household name, but it’s the kind of company that keeps global electronics supply chains humming.
This integrated electronics manufacturing services (EMS) provider handles everything from design to production, churning out consumer electronics and industrial solutions from factories in China and Vietnam.
The story here is one of transition, and management’s willingness to spend big to chase it.
For the fiscal year ending 31 March 2025 (FY2025), Valuetronics reported revenue of HK$1.73 billion, up 3.5% YoY.
The Industrial and Commercial Electronics division carried the load, jumping 8.8% to HK$1.36 billion, bolstered by strong contributions from a new network access solutions customer in Canada.
That offset a 12.2% decline in the Consumer Electronics to HK$367 million, as demand for traditional consumer lifestyle products cooled.
Profits told a better story.
Net profit rose 6.8% YoY to HK$170.4 million, helped by gross margin expansion from 15.9% a year ago to 17.0%.
The company is shifting its sales mix toward higher-margin products – a smart move in a competitive industry.
Here’s the twist: free cash flow swung sharply negative to HK$20.1 million from a positive HK$212.6 million a year ago.
The culprit? A hefty HK$228.0 million in capital expenditure, mostly for deposits on AI servers and GPUs – a big bet for a company this size.
Despite the cash outflow, management paid out HK$0.27 per share in dividends for FY2025.
At S$0.84, the stock yields 5.3%.
Looking ahead, management is cautiously optimistic about staying profitable in FY2026, leaning on its integrated Vietnam-China manufacturing platform to weather on-going trade tariff uncertainties.
The AI infrastructure investment signals confidence in securing future growth, but investors will want to watch whether this old-school EMS player can successfully pivot into new-school markets.
HRnetGroup (SGX: CHZ)
HRnetGroup is Asia’s answer to a sprawling recruitment empire, operating across 18 Asian cities with over 900 consultants, and 20 brands built over 33 years.
Its business comprises two main segments: Professional Recruitment (high-margin permanent placements), and Flexible Staffing (contract and temporary staffing solutions generating recurring revenue).
In an industry sensitive to economic wobbles, HRnetGroup just posted surprisingly strong numbers.
For 1H2025, revenue climbed 3.4%YoY to S$295.5 million.
The real eye-catcher though was net profit, which jumped 29.2% YoY to S$28.0 million.
Free cash flow followed suit, surging 54.1% to S$26.5 million.
Don’t get too excited, because the details give a more modest picture.
The Flexible Staffing segment did the heavy lifting, growing 4.1% YoY to S$265.8 million on the back of 3.7% contractor volume gains in Taipei, Jakarta, and Shanghai.
Meanwhile, Professional Recruitment revenue dipped 3.3% YoY to S$27.7 million due to softer mid and junior-level placements, though senior executive search volumes grew 6.1%.
The profit surge wasn’t purely operational brilliance either.
A big chunk came from increased government grants under Singapore’s Progressive Wage Credit Scheme and unrealised revaluation gains.
Still, HRnetGroup maintained a debt-free balance sheet with S$232.6 million in cash and S$311.7 million in total cash and treasury bills as at 30 June 2025.
That’s some serious firepower for a company navigating uncertain waters.
The human resource specialist declared an interim dividend of S$0.020 per share for 1H2025, payable on 2 September 2025.
At S$0.73, shares are offering a 5.7% dividend yield, the highest of our three picks, and backed by solid cash generation.
Looking ahead, management acknowledged macro headwinds – trade uncertainties and economic jitters aren’t great for hiring activity.
The plan is to double down on higher-value recruitment segments where margins are wider, supported by cross-border capabilities, and keep the Flexible Staffing engine running efficiently with recurring government contracts.
Get Smart: Cash talks, but know what you’re buying
These three stocks all clear 5% yields with cash to back them up, but they’re very different bets.
QAF offers defensive stability, Valuetronics is betting heavily on AI with negative free cash flow, and HRnetGroup delivers the highest yield but comes with cyclical risk.
Each has the balance sheet strength to weather earnings volatility, but only if you understand what you’re really buying.
Here’s what matters: Cash-rich balance sheets give these companies the flexibility to keep paying when earnings stumble.
That’s valuable insurance for income investors.
But don’t mistake a fat yield for a free lunch – check the cash flow trends, watch the payout ratios, and understand what drives each business.
The best dividend is the one that still shows up next year.
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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.
