Most income-focused investors jump straight to the earnings figures, yet the balance sheet frequently reveals far more.

A business holding more cash than debt enjoys a comfortable buffer, enabling it to sustain dividend payments even when profits suffer a short-term setback.

Singapore Exchange Limited (SGX: S68), Venture Corporation (SGX: V03) and Genting Singapore (SGX: G13) all carry net cash.

Yet each company deploys its cash reserves in markedly different ways.

Can SGX continue lifting its dividend?

Singapore Exchange (SGX) operates Singapore's only stock market.

At the close of FY2026 on 30 June 2026, the exchange held S$1.8 billion in cash against S$628.2 million in borrowings.

That leaves a net cash reserve of roughly S$1.2 billion, and management intends to clear all of its debt in FY2027.

Based on these figures, SGX's full-year ordinary dividend amounts to S$0.445 per share, together with a proposed one-off additional dividend of S$0.125 per share from capital recycling gains.

This lifts the full-year payout to S$0.570 per share.

Free cash flow, which ultimately funds sustainable distributions, came in strong at S$788.8 million, ahead of adjusted net profit of S$759.5 million.

Net revenue climbed 13.9% year on year (YoY) to S$1.5 billion as securities daily average traded value surged 34.9% to S$1.8 billion.

Reported net profit rose by a more modest 7.8% to S$698.4 million after factoring in a S$53.4 million goodwill impairment.

Management has pledged to lift its quarterly dividend by 0.25 cents a quarter until FY2028.

The plan appears affordable today, but keep an eye on cash flow.

Free cash flow grew just 2% even as revenue rose 13.9%, and management expects FY2027 expenses to increase 6% to 8% with capital expenditure of around S$100 million.

And remember, trading volumes can fall as quickly as they have risen.

Why did Venture raise its ordinary dividend when free cash flow turned negative?

Venture supplies technology solutions, products and services to the electronics industry.

As at 30 June 2026, the group held S$1.11 billion in cash and no borrowings.

For the first half of 2026, Venture declared an ordinary interim dividend of S$0.30 per share, up 20% from S$0.25 a year earlier.

Because no special dividend was declared this round – compared to S$0.05 previously – the total interim payout remains unchanged at S$0.30 per share.

A 20% increase sounds generous, but shareholders are receiving the same S$0.30 as last year.

With last year's special dividend folded into the baseline payout, more of your dividend now comes as a regular payment.

What about the negative free cash flow?

The swing came from working capital, not from weaker operations.

Operating profit before working capital changes actually expanded to S$154 million from S$137.1 million.

Venture then directed S$194 million into inventory build-up to support business growth and bolster supply-chain resilience, which brought free cash flow to negative S$0.9 million from S$137.7 million a year ago.

Revenue rose 7.4% YoY to S$1.35 billion, while net profit grew 5.6% to S$119.3 million as demand picked up across key segments such as artificial intelligence infrastructure.

The group has also bought back around S$46 million of shares to date.

Venture's net cash position gives it the flexibility to fund inventory growth while simultaneously rewarding shareholders.

That inventory still has to turn back into cash, and weaker volumes from a key Lifestyle Consumer customer show how quickly demand can shift.

What is Genting Singapore's S$2.9 billion paying for?

Genting Singapore owns and operates Resorts World Sentosa (RWS), one of Singapore's two integrated resorts.

It holds the largest cash cushion among the three companies: S$2.9 billion as at 30 June 2026, with no borrowings excluding lease liabilities.

On 22 September 2026, shareholders received a 1H2026 interim tax-exempt dividend of S$0.02 per share, unchanged from a year ago.

Free cash flow remained thin at S$8.9 million, though that was an improvement from negative S$5.8 million a year prior.

Heavy capital expenditure for the RWS 2.0 expansion absorbed S$322.5 million, taking up about 97% of the group's S$331.4 million in operating cash flow.

Revenue slipped 0.9% YoY to S$1.2 billion, weighed down by a 4.2% drop in gaming revenue to S$804.4 million, even as non-gaming revenue grew 6.4% to S$398.8 million.

Net profit fell 33.5% to S$156.1 million as ongoing asset enhancement work pushed depreciation and amortisation up by 25%, while lower prevailing interest rates dragged interest income down by 55%.

Genting's cash still protects the dividend, but falling rates mean it earns far less than a year ago.

Management flagged softer tourism demand and higher travel costs amid geopolitical uncertainty.

The ongoing resort enhancements will roll out progressively through 2027 and 2028 before the full completion of RWS 2.0 in 2030.

Until these new developments begin generating fresh earnings, the group's net cash remains the dividend's main line of defence.