You don’t have to stick to the “usual suspects” on Singapore’s Straits Times Index (SGX:^STI) to find great dividends.
In fact, some of the best opportunities for retirees are the quiet, cash-rich companies that most people overlook.
Today, we spotlight three lesser-known names that share a common trait: robust net cash positions that underpin their dividend payouts.
For retirees seeking sustainable income, a strong balance sheet can mean the difference between dividends that endure and those that disappear when times get tough.
Here are three cash-rich dividend stocks worth a closer look.
Pan-United Corporation (SGX: P52)
Pan-United is a familiar name in Singapore’s construction landscape.
The group manufactures and supplies ready-mix concrete and slag while trading cement and refined petroleum products across Singapore, Vietnam, and Malaysia.
The company delivered a solid set of results for the first half of 2025 (1H2025).
Revenue climbed 4% year on year (YoY) to S$401.1 million, supported by healthy construction activities in Singapore.
Net profit attributable to owners rose 11% YoY to S$20.6 million.
More importantly for income investors, Pan-United declared an interim dividend of S$0.010 per share, a 43% increase from the S$0.007 paid in the corresponding period last year.
What gives management the confidence to raise dividends so substantially?
A glance at the balance sheet provides the answer.
As at 30 June 2025, Pan-United held S$83.0 million in cash against debt of just S$13.2 million, maintaining a healthy net cash position of approximately S$70 million.
To be fair, free cash flow contracted sharply to S$1.0 million from S$49.9 million a year ago.
The group deployed S$24.9 million on property, plant, and equipment additions during 1H2025, up significantly from S$6.0 million in the prior year.
Working capital outflows also weighed on cash generation.
However, this appears to be deliberate reinvestment rather than deterioration.
The Building and Construction Authority estimates total construction demand between S$47.0 billion and S$53.0 billion in 2025.
Pan-United has secured approximately S$430 million worth of contracts to supply ready-mix concrete for Changi Airport Terminal 5, with these contracts spanning five years.
With multi-year revenue visibility and a fortress balance sheet, Pan-United looks well-positioned to continue rewarding shareholders.
Shares currently offer a trailing dividend yield of 2.8% at its current stock price of S$1.18.
Valuetronics Holdings (SGX: BN2)
Valuetronics is an integrated electronics manufacturing services provider offering design, development, manufacturing, and supply chain support.
The company operates through two segments: Industrial and Commercial Electronics (ICE) and Consumer Electronics (CE).
For the six months ending 30 September 2025 (1HFY2026), revenue declined 3% YoY to HK$836.6 million.
The ICE division grew 5.7% to HK$706.7 million, driven by new customers in network-access-solutions products and cooling solutions for high-performance computing environments.
However, the CE segment fell 32.8% to HK$129.9 million due to decreased demand for legacy traditional consumer lifestyle products.
Despite the revenue decline, net profit attributable to owners rose 2.7% YoY to HK$93.0 million.
Gross margin expanded impressively from 16.8% to 18.8%, reflecting a favourable shift in sales mix toward the higher-margin ICE segment, which now accounts for 84.5% of total revenue, up from 77.6% previously.
The dividend tells the real story.
Valuetronics declared an interim dividend of HK$0.04 per share and a special dividend of HK$0.04 per share, totalling HK$0.08 per share.
The willingness to pay a special dividend signals that management views the balance sheet as more than adequately capitalised.
Management expects to complete the phase-out of low-margin traditional consumer lifestyle products from the CE segment by end-FY2026.
Looking ahead, the group sees growth potential in entertainment-focused CE products for theme-park applications, while network-access-solutions and high-performance computing customers should drive ICE growth.
The Vietnam manufacturing facility remains strategically important for serving North American customers amid evolving tariff uncertainties.
At S$0.895, shares currently provide a trailing dividend yield of 5%.
SBS Transit (SGX: S61)
SBS Transit operates Singapore’s Northeast Line and Downtown Line, alongside multiple bus packages across the island.
The group’s business is split between public transport services, which generate the bulk of revenue, and other commercial services including advertising.
For the third quarter of 2025 (3Q2025), revenue slipped 2.4% YoY to S$386.5 million, while net profit declined more sharply, dropping 20.6% to S$14.5 million.
The revenue decline reflects the loss of the Jurong West bus package from September 2024, coupled with lower fuel indexation.
Higher rail fare revenue and advertising income partially offset these headwinds.
Despite lower revenue, operating costs fell by S$7.3 million due mainly to lower fuel and electricity costs, though this was partly eroded by higher staff costs.
Lower interest income, which fell S$1.4 million YoY, amplified the profit decline.
On the operational front, average daily ridership improved across both rail lines.
The Northeast Line saw ridership climb 3.8% YoY to 625,000, whilst the Downtown Line recorded 490,000 daily passengers, up 1.4%.
The silver lining lies in the balance sheet.
As at September 2025, SBS Transit held S$349.2 million in cash and short-term deposits, providing a buffer against operational pressures.
However, investors should note the headwinds ahead.
SBS Transit failed to retain the Tampines bus package in the recent tender, with the package set to transfer out from 5 July 2026.
This will further pressure the group’s bus operations revenue, following the earlier loss of the Jurong West package.
No dividend was declared for the quarter.
For the 1H2025, SBS Transit dished out S$0.0895 per share in dividends, up from S$0.0558 per share.
At S$3.26, shares offer a 7.3% trailing dividend yield, excluding its special dividends.
Get Smart: Cash is king for dividend sustainability
For income investors, a company’s ability to pay dividends consistently hinges on more than just profits.
Free cash flow is the lifeblood of dividends, and a strong net cash position provides the financial flexibility to maintain payouts through difficult periods.
Among the three stocks profiled, Pan-United stands out with its combination of dividend growth, multi-year contract visibility, and healthy balance sheet.
Valuetronics offers an intriguing turnaround story as it pivots toward higher-margin industrial products while returning cash to shareholders.
SBS Transit provides defensive exposure with its substantial cash reserves, though investors should weigh this against the operational challenges from lost bus packages.
As always, investors should conduct their own due diligence before making any investment decisions.
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Disclosure: Calvina Lee does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and does not own any of the stocks mentioned.
