A dividend increase is easy to announce. Paying for it is harder. The test is whether the cash behind the payout is growing too. A higher dividend funded by a shrinking cash pile tells a different story from one backed by rising free cash flow. Three SGX-listed companies raised their dividends in their latest results. All three sit in a net cash position, meaning their cash comfortably exceeds their borrowings. But the quality of each raise differs. Here they are, the strongest cash case first.

Which company funded its raise from rising cash?

Hong Leong Asia (SGX: H22) is an investment holding company with two main units. Yuchai makes engines and brings in around 86% of group revenue, while the building materials arm produces cement, concrete and quarry products. The balance sheet did the heavy lifting here. Cash and short-term deposits rose to S$1.6 billion, up from S$1.4 billion a year ago. Total loans and borrowings fell to S$757.4 million from S$873.9 million....