When the market is hitting all-time highs and everything looks rosy, it’s easy to get lazy with your homework.
With rates declining and big themes like digitalisation and green energy stoking the flames, it feels like this rally still has plenty of gas in the tank.
But don’t get reckless; picking quality businesses is still the only real way to capture growth without getting hammered when the music eventually stops.
We highlight five such names that fit these criteria.
Sheng Siong Group Limited (SGX: OV8), or Sheng Siong — The Defensive Compounder
Our first pick is a recession-resilient compounder in Sheng Siong, your neighbourhood grocery store.
The group has been steadily adding new stores in Singapore, with management guiding for at least three new stores per year.
These new additions have helped the supermarket chain grow revenue from S$1.4 billion in 2021 to S$1.6 billion in 2025, representing a compound annual growth rate (CAGR) of 2.4%.
Net income grew more slowly, with a CAGR of 1.5%, from S$138.7 million to S$149.5 million during the same period.
That said, slow and steady does pay off in this case, with Sheng Siong paying a reliable annual dividend of roughly S$0.06 per share over the past five years.
Keppel Limited (SGX: BN4), or Keppel — Structural Growth Leader
Next on our list is a diversified conglomerate that is riding the favourable growth winds of digitalisation, infrastructure, and renewable energy.
With its data centres and subsea cables providing connectivity, Keppel sits at the core of Singapore’s digitalisation efforts.
Add in the power plants they own, which provide low-carbon and renewable energy (hydrogen and natural gas), and you’ve got the trifecta exposure of three mega trends.
The numbers back up the optimism.
For the full year ended 31 December 2025 (FY2025), the “New Keppel” posted a 39% jump in net profit to S$1.1 billion, with all three business segments improving.
Recurring income also climbed 21% year on year (YoY) to S$941 million, driven by asset management and operations.
With its portfolio of assets and services, the future looks bright for Keppel.
Seatrium Limited (SGX: 5E2), or Seatrium — Cyclical Recovery Play
The third name on our list is a group quietly emerging from the depths of a deep bear market.
In light of the improving offshore vessel environment, Seatrium turned in an encouraging report card.
For FY2025, revenue rose 24.3% to S$11.5 billion, driven by strong project execution.
Net profit more than doubled to S$323.6 million, boosted by higher revenue, overhead savings, and lower finance costs, despite increased tax expenses.
Gross margin more than doubled to 7.4%, accompanied by the production of S$443 million in free cash flow.
As economic growth picks up, Seatrium, with its cyclicality, could be due for stronger results in the future.
Singapore Exchange Limited (SGX: S68), or SGX — Dividend Growth Champion
Our fourth name is a company set to benefit from the recent government initiatives to boost Singapore’s financial markets.
SGX, which collects fees from trading volumes and derivatives, is poised to gain from supportive measures aimed at revitalising market liquidity.
The bourse operator has a strong track record of producing free cash flow, averaging S$487.8 million over the last nine years.
This trend is likely to continue as these new structural reforms take root.
Due to SGX’s ability to generate consistent free cash flow, the group has grown its annual dividend per share by a decent CAGR of 4.0% from S$0.32 for the full year ending 30 June 2021 (FY2021) to S$0.375 for FY2025.
Its payout ratio of 65.8% is sustainable, giving the group room for further dividend increases down the road.
China Sunsine Chemical Holdings Limited (SGX: QES) — Balance Sheet Advantage
Finally, we highlight a lesser-known industrial name with a pristine balance sheet.
As of 31 December 2025, China Sunsine has a cash position of RMB 2.3 billion on its balance sheet with zero debt.
This strong financial position gives the company immense flexibility in how it approaches capital allocation.
Be it reinvesting in the business to grow market share, or returning capital to shareholders through dividends and share repurchases, the world is China Sunsine’s oyster.
This chemical company’s disciplined capital management has allowed it to pay a consistent annual dividend since 2007, a fact that is almost unheard of for a cyclical name.
Get Smart: Growth Follows Fundamentals
In conclusion, these five companies represent compelling opportunities for appreciation through a combination of earnings growth and balance sheet discipline.
By focusing on underlying fundamentals, you can sleep easy knowing your investments are well-positioned for the next leg up.
However, a rosy outlook doesn’t mean you should ignore the cracks in the pavement.
We’re watching three specific spoilers: a sudden stall in global growth, a “higher-for-longer” rate shock if inflation picks up, and the simple fact that many stocks aren’t at bargain valuations.
Any of these risks could derail the performance of even the highest-quality names.
Investing is rarely a straight line up; the key is to stay vigilant and ensure your portfolio can weather the occasional bump in the road.
Many Singapore stocks fall behind inflation, which means your money quietly loses strength over time. Dividend stocks have a very different track record. Some continued delivering 6% to 13% every year across the toughest market conditions.
In this FREE report, discover 5 crisis-tested dividend stocks that kept rewarding investors while the market struggled. Download your dividend investing guide now.
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Disclosure: Wilson.H does not own shares in any of the companies mentioned.
