Your CPF Special Account (SA) is a dividend benchmark hiding in plain sight.
It pays at least 4% a year, and you don’t have to lift a finger.
So why bother with dividend stocks at all?
Because a good business can grow its payout over time.
At recent prices, the three companies below offer trailing yields above that rate.
A high yield, though, only matters if the company can keep paying it.
Let’s test each one, starting with the strongest.
| Company Name & Ticker | Interim Dividend | Dividend Yield |
| Info-Tech Systems Ltd(SGX: ITS) | S$0.0168(Up from 8.4% YoY) | 5% |
| VICOM Ltd(SGX: WJP) | S$0.0395(Up 27.4% YoY) | 4.5% |
| QAF Limited(SGX: Q01) | S$0.0100(Unchanged) | 5.5% |
Source: Fiscal.ai as at 22 October 2026.
Does Info-Tech have the cash to back its dividend?
Info-Tech Systems Ltd. (SGX: ITS) sells cloud-based human resource, accounting and customer relationship software.
It listed on the SGX Mainboard in July 2025.
For the first half of 2026 (1H2026), revenue rose 22% year on year (YoY) to S$27.3 million.
Subscriptions brought in S$21.2 million, up 12%, while services revenue more than doubled to S$4.9 million on demand for AI training.
Profit rose 89% to S$9.7 million.
Look closer, and two one-offs flatter that growth.
This year included a S$1.0 million Enterprise Singapore grant, while last year carried about S$2.0 million in listing expenses.
Strip both out, and adjusted profit after tax rose a more measured 20% to S$8.7 million.
Here’s where Info-Tech shines.
The board raised its interim dividend to S$0.0168 per share from S$0.0155.
That payout costs S$4.3 million, less than half of net profit.
Free cash flow more than doubled to S$15.1 million, over three times the dividend payout.
The group held S$76.6 million in cash with no borrowings.
Here’s the thing: S$6.9 million of that free cash flow came from customers paying what they owed.
That boost may not repeat.
Info-Tech also has only a short record as a listed dividend payer.
Can VICOM’s bigger dividend outlast ERP 2.0?
VICOM Ltd (SGX: WJP), a subsidiary of ComfortDelGro Corporation Limited (SGX: C52), carries out Singapore’s mandatory vehicle inspections.
In 1H2026, revenue grew 6.4% YoY to S$74.3 million.
Total operating costs fell 1.2% to S$50.3 million as subcontractor fees on the ERP 2.0 On-Board Unit project dropped 44.2%.
With revenue up and costs down, profit attributable to shareholders rose 28% to S$19.9 million.
VICOM’s interim dividend rose 27.4% to S$0.0395 per share, about 70% of earnings per share of S$0.0561.
Cash flow kept pace.
Operating cash flow grew 65.1% to S$31.8 million, and free cash flow more than doubled to S$14.7 million even after S$17.2 million of capital expenditure.
VICOM held S$53 million in cash, with no bank borrowings.
So what’s the catch?
The On-Board Unit project wraps up in December 2026, and management expects a softer second half.
Interest income halved to S$0.4 million as rates fell, while the Middle East conflict clouds demand for Oil & Gas testing.
And because VICOM pays out a larger share of its profit than Info-Tech, it has less room to absorb a dip.
Can QAF’s balance sheet carry the dividend through a restructuring?
QAF Limited (SGX: Q01) bakes bread under brands such as Gardenia, while its Ben Foods Group arm imports and distributes food and beverages.
On the surface, 1H2026 looked steady.
Revenue was flat at S$306.7 million, up 0.2% YoY; it would have grown 2% in constant currency.
Operating profit rose 87% to S$15.3 million.
A S$4.3 million foreign currency gain helped, as did cuts of 15% in utilities costs and 36% in advertising spend.
The bottom line tells a different story.
Net profit attributable to shareholders fell 51% to S$1.9 million.
QAF booked S$10 million of exceptional costs as it closes its Singapore manufacturing facilities, and took a S$3.9 million non-cash impairment on its Malaysian joint venture.
Exclude both, and profit before tax came to S$16.5 million, though that still includes the currency gain.
Free cash flow more than halved to S$5.3 million, yet QAF kept its interim dividend unchanged at S$0.01 per share.
How can it afford that?
Look at its balance sheet.
QAF held S$204.8 million in cash against just S$6.5 million of debt, excluding lease liabilities.
That net cash position buys the company time.
Time alone isn’t a business plan, though.
Management flagged ongoing cost pressures and unpredictable currency moves, and expects further transition costs will follow as bakery production shifts to Malaysia.
Until earnings recover, this dividend leans more on QAF’s savings than on its earnings.
Get Smart: Ask where the dividend comes from
A yield tells you what a company paid, but it doesn’t tell you what it can afford next.
So before you buy, ask: is this dividend coming from cash the business generates today, or from cash it saved in earlier years?
Cash flow can renew itself, but savings run down.
That’s why free cash flow is the lifeblood of dividends.
Check it every time your company reports, and you’ll spot a stretched payout long before a cut arrives.
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Disclosure: Calvina L. does not own shares in any of the companies mentioned. Chin Hui Leong contributed to this article and owns shares in VICOM.
