For income investors, May is shaping up to be a busy month beyond the blue chips.
HRnetGroup (SGX: CHZ) pays out on 7 May 2026, VICOM Ltd (SGX: WJP) follows on 8 May, and Delfi Ltd (SGX: P34) rounds things off on 15 May.
Three cheques in eight days is welcome news.
But income investors know that headline yield is only the starting point.
What really matters is whether the payout is funded by recurring cash flow, supported by a sound balance sheet, and capable of being repeated next year.
On those measures, the three companies tell rather different stories.
HRnetGroup: A Clean Balance Sheet Doing the Heavy Lifting
A major recruitment and staffing firm operating across Asian cities under brands such as HRnetOne, PeopleSearch and RecruitFirst, HRnetGroup saw its Flexible Staffing arm contribute 89.7% of revenue in FY2025, while Professional Recruitment – though just 9.6% of revenue – punched above its weight at 45.2% of gross profit.
For the year ended 31 December 2025, revenue rose 3.0% year on year (YoY) to S$584.0 million, while profit attributable to owners climbed 15.0% to S$51.2 million.
Free cash flow (FCF) ticked up 5.3% to S$52.0 million, and the group ended the year with S$262.9 million in cash and zero debt.
The board declared a total dividend of S$0.042 for FY2025, 5.0% higher than the year before.
At a closing price of S$0.745, that works out to a trailing yield of 5.6%.
A note of caution, though: the 15.0% profit jump was flattered by a S$6.9 million increase in other income, driven by fair value gains on financial assets and gold.
Strip that out and the underlying picture is steadier rather than spectacular.
Still, with FCF comfortably covering the payout and a fortress balance sheet behind it, the dividend looks well anchored.
VICOM: A Stellar Year, But How Much of It Repeats?
Singapore’s dominant vehicle inspection player showed eye-catching headline FY2025 numbers: revenue surged 40.1% YoY to S$167.4 million, and profit attributable to shareholders jumped 45.1% to S$42.5 million.
The board responded with a final dividend of S$0.053 per share, taking total FY2025 dividends to S$0.084 – a sizeable step up from S$0.058 in FY2024.
Look beneath the surface, however, and the picture is more nuanced.
Free cash flow actually fell 16.8% to S$19.2 million as capital expenditure ballooned to S$39.0 million.
More importantly, management itself flagged that the standout performance was largely driven by the On-Board Unit (OBU) installation project for Electronic Road Pricing 2.0 – work that is substantially complete.
Management expects overall demand for testing services to decrease as a result.
The encouraging note: the new integrated testing hub at Jalan Papan should be fully operational in 2H2026, and capex is expected to normalise from FY2026 – both of which could support cash flow generation going forward.
The dividend is funded; whether it can be repeated at this level is the question.
Delfi: A Dividend Cut, But A Stronger Company
Delfi, the Indonesia-focused chocolate confectionery group behind SilverQueen, Ceres and Delfi, presents the counterintuitive case.
The board cut total FY2025 dividends to S$0.0343, down from S$0.0429 a year ago.
On the surface, that’s the kind of move income investors instinctively dislike.
Look at the cash flow statement, though, and the picture flips.
FCF nearly tripled to US$69.9 million from US$24.7 million, helped by tighter working capital management and lower capex.
The group ended the year in a net cash position of US$53.5 million.
Revenue dipped 0.5% to US$500.1 million and net profit eased 2.1% to US$33.2 million, with Own Brands growing 4.9% but Agency Brands falling 7.4% after one brand termination.
Management cited an uncertain Indonesian macro backdrop and softening cocoa prices, and chose to invest in brands and distribution rather than maximise the immediate payout.
Sometimes a smaller dividend backed by a stronger balance sheet says more about management’s discipline than a generous one funded by a windfall year.
Get Smart: Read the Cash, Not Just the Cheque
Free cash flow is the lifeblood of dividends – and across these three names, it tells a richer story than the payout itself.
HRnetGroup’s dividend is comfortably covered, even if the headline profit had a one-off lift.
VICOM’s higher payout was funded by an exceptional project year that management says won’t repeat at the same intensity.
Delfi cut its dividend even as cash generation surged – a reminder that prudence and strength can coincide.
For income investors, the question is never just how much – it is how sustainable.
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Disclosure: Calvina L. does not own any of the stocks mentioned. Chin Hui Leong contributed to the article and owns shares of HRnetGroup, Delfi and VICOM.
