In the hit musical Wicked, when Elphaba belts out, “It’s time to try defying gravity,” it’s a moment of liberation — and perhaps a fitting cue for Singapore investors today.
The STI’s blue-chips have long been our comfort zone, but those seeking better dividend yields might find it’s time to rise above the familiar and explore new names poised to perform.
The SPDR STI ETF (SGX: ES3), which tracks Singapore’s benchmark index, offers a respectable 4.04% dividend yield as of 22 October 2025.
But here’s what might surprise you.
There’s a whole universe of dividend-paying stocks beyond those 30 mainboard veterans waiting in the wings, with some delivering performances that outshine the leads, at least when it comes to dividend yields.
The iEdge Singapore Next 50 Index features mid-cap companies that don’t get the same spotlight as their STI counterparts.
Today, we’re highlighting three Singapore stocks, each with a market capitalisation under S$1 billion, that are truly “defying gravity” with dividend yields stronger than the STI’s.
SBS Transit (SGX: S61): Dividend Yield 7.4%
If you take public transport in Singapore, chances are you’re already a customer of SBS Transit.
Operating about 200 bus routes alongside the North East Line, Downtown Line, and Sengkang-Punggol LRT systems, the company is one of Singapore’s transport mainstays.
But here’s what caught our attention: while their business faced headwinds, their dividend just jumped 60%.
Revenue fell 4.5% to S$745.9 million in 1H2025, primarily due to losing the Jurong West bus package.
Yet, management declared an interim dividend of S$0.0895 per share, up from S$0.0558 last year, a bold move backed by solid fundamentals.
SBS Transit sits on S$340.8 million in cash with zero debt, giving them plenty of financial flexibility.
More impressively, free cash flow swung from negative S$23.8 million to positive S$29.1 million despite the revenue decline, a sign that management is tightening operations effectively.
While losing the Tampines Bus Package to Go-Ahead Singapore will pressure bus operations through July 2026, rail revenue is compensating with steady ridership growth and fare increases in December 2024 and 2025.
Lower fuel and electricity costs are providing additional cushion against rising staff expenses.
SBS Transit’s combination of a pristine balance sheet, improving cash flow, and that impressive 60% dividend hike makes this transport operator worth a closer look.
Riverstone Holdings (SGX: AP4): Dividend Yield 5%
Riverstone Holdings may not be a household name, but this Malaysian glove manufacturer operates six facilities across Malaysia, Thailand, and China with 10.5 billion gloves annual capacity.
While the glove sector’s pandemic boom is long over, Riverstone continues delivering dividends even as it navigates a strategic shift.
Revenue held steady at RM497.1 million in 1H2025, but profitability took a hit with net profit falling 29.6% to RM101.8 million.
The culprit?
Gross margins compressed from 39.6% to 29.7% as management pivoted towards generic healthcare gloves, a lower-margin product that’s seeing stronger demand from hospitals and medical facilities.
Despite the profit squeeze, Riverstone maintains financial strength with RM 602.3 million in cash and zero debt on its balance sheet.
Free cash flow remains healthy at RM121.2 million, though down 5.4% year on year (YoY) as the company invested RM29.4 million in capital expenditure (more than double the previous year’s spending) to commission three new healthcare production lines in the second half.
The company declared dividends of RM0.025 and RM0.030 per share for the second and first quarters respectively, showing management’s confidence in the transition strategy.
While facing headwinds from price competition, currency fluctuations, and potential US tariffs, Riverstone is betting that new higher-margin customised products will restore profitability once the healthcare capacity comes online.
For dividend investors, Riverstone offers a compelling mix of financial resilience and strategic positioning in the growing healthcare glove market.
CDL Hospitality Trust (SGX: AP4): Dividend Yield 5%
With S$3.5 billion in assets under management, CDL Hospitality Trust, which owns 22 properties across eight countries, offers geographic diversification that most Singapore-focused landlords can’t match.
Yet, 1H2025 proved challenging, with distribution per stapled security falling 21% YoY to S$0.0198.
The numbers reflect a tough period: gross revenue slipped 1.8% to S$125.1 million while net property income dropped 11.9% to S$58.6 million.
Singapore hotels, which form a significant portion of the portfolio, saw occupancy fall to 73.2% and revenue per available room decline 14.2% – a sharp contrast to last year’s boost from the Singapore Airshow and Taylor Swift concerts.
But beneath the weak headline numbers, CDLHT is positioning for future growth.
The trust completed two UK acquisitions in late 2024 (Hotel Indigo Exeter and Benson Yard) and opened The Castings, a build-to-rent property, in July 2024, though meaningful contribution won’t come until 2026.
Meanwhile, W Hotel’s ongoing renovations temporarily reduced net property income by S$3.2 million, short-term pain for potential long-term gain when rooms reopen around early 2026.
Geographic diversification provided some buffer with Japan and Australia delivering RevPAR growth of 13.7% and 15.9% respectively, offsetting weakness in Singapore and the Maldives (where it owns a resort).
With multiple properties under renovation and new acquisitions ramping up, CDLHT appears to be trading current distributions for future growth potential.
For dividend investors looking beyond the STI, CDLHT’s global portfolio and ongoing transformation merit attention, but patience will be needed as the trust works through its renovation and integration phase – their reporting on 30 October 2025 should shed more light on progress.
Get Smart: Looking Beyond the Spotlight
These three companies won’t win any popularity contests against the STI’s blue-chip names.
Yet, each offers dividend yields that outpace the STI’s 4.04%, backed by strong balance sheets with significant cash positions and little to no debt.
This financial discipline gives them the flexibility to navigate their respective transitions while continuing to reward shareholders.
What makes these stocks interesting is their willingness to make bold moves.
Whether it’s declaring dividend increases despite revenue headwinds, pivoting to lower-margin products for future growth, or disrupting operations with renovations, these companies are playing the long game while still paying shareholders today.
Before jumping in, consider your risk tolerance, investment goals and timeline.
These aren’t set-and-forget dividend stocks – they require monitoring as each company works through its strategic shifts, but for investors willing to venture beyond the STI, these understudies might just help your portfolio take flight.
Sometimes the best dividend stories begin offstage, preparing for their moment in the spotlight.
Looking to create a lifelong income stream? Check out our report, ‘7 Singapore Blue-Chip Stocks That Can Pay You for Life.’ We uncover a powerful lineup of dividend-paying stocks with the reliability and growth potential you need in today’s market. Don’t miss out on these dependable picks. Download your copy now and start building a secure financial future!
Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses!
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.
