4 Cash-Rich Small Cap Stocks Offering Passive Income

In today’s falling interest environment, investors are hunting for income that generate money for you while you sleep.

But while the spotlight often shines on big-name blue chips and REITs, a quiet group of cash-rich small-cap companies has been steadily rewarding shareholders — without the hype, without the volatility drama.

Small-cap stocks are shares of smaller, often younger companies, typically valued between $300 million and below $1 billion.

These under-the-radar gems boast strong balance sheets, healthy cash reserves and consistent dividends, making them powerful tools for anyone building reliable passive income.

In this article I will be writing 4 cash-rich small cap stocks offering passive income.

Multi-Chem Ltd

Though Multi-Chem share price looks expensive, it certainly classify as a small cap as it has a market cap of slightly above $303 million. Multi-Chem consist of 2 main business, the PCB distribution business and the IT Business. For its PCB distribution business, it manufacturers with a wide range of PCB-related materials and equipment such as non-woven brushes, tacky rollers, tack cloth/wipes, etc. For its IT business, it is conducted through its wholly-owned subsidiary M.Tech. M.Tech  is a leading cyber security and network performance solutions provider. The company work with leading vendors to bring optimal solutions to the market through a channel of reseller partners. For the half year ended 30 June 2025, the company reported revenue decrease by 12% to S$300.9 million while net profit was down 13% to S$14.2 million. Company is in net cash position. The company declared an interim dividend of 11.10 cents unchanged from the previous year. In fact, the company has been declaring increasing dividends for the past 3 years as can be seen from the table below. Hence, Multi-Chem can be considered as one of the 4 cash-rich small cap stocks offering passive income.

Nam Lee Pressed Metal Industries Ltd

Nam Lee Pressed Metal Industries Limited is a one-stop specialist offering complete service in the designing, manufacturing and supplying of metal products and solutions for diverse industries in building, shipping container and infrastructure etc. For the year ended 30 Sep 2025, revenue was up 15.7% to S$157.5 million while net profit was up 102.7% to S$24.8 million. The company declared a final dividend of 3 cents per share which is an increase from 2 cents per share compared to the previous year. This translate to a dividend yield of 5% based on the last done price of 59 cents In fact, the company has been paying consistent dividend over the years as can be seen from the table below. Hence, the company can be considered as one of the 4 cash-rich small cap stocks offering passive income.

Malaysia Smelting Corporation Bhd

The MSC Group is one of the world's leading integrated producer of tin metal and tin-based products involved in the upstream and downstream sector of the tin industry through tin mining and custom tin smelting. For the quarter ended 30 June 2025, the company reported a revenue of RM379.0 million in 2QFY25 (2QFY24: RM410.8 million), primarily due to lower sales of refined tin and decrease in average tin price of RM139,800 per metric tonne (“MT”) (2QFY24: RM153,400 per MT). As a result, profit amounted to RM13.9 million, compared to RM16.7 million in the same quarter last year (“2QFY24”). The company declared an interim dividend of 4 sen per share. The company has been declaring consistent dividends for the past few years as can be seen from the table below. Though MSC has a market cap of MYR 1.33B but in SGD terms, the market cap is only slightly above SGD420 million. Hence, MSC can be considered as one of the 4 cash-rich small cap stocks offering passive income.

Sin Heng Heavy Machinery

Sin Heng Group’s core business consists of Equipment Rental which involves the rental of cranes and aerial lifts; while the Trading business involves the trading of both new and used cranes and aerial lifts. The Group also undertakes the sales and distribution of spare parts for the cranes and aerial lifts that they deal in as part of our commitment to customers. For the half year ended 30 June 2025, Sin Heng reported ig revenue down by 1.4% to S$23.6 million while net profit net profit was down 29.1% to S$2.5 million. The company is also in a net cash position with minimal borrowings. The company declared a special interim dividend of 5 cents per share which was a pleasant surprise as the company usually declare dividend at the end of the financial year. The company has been giving steady dividends for the past few years as can be seen from the table below. Hence, the company can be considered as one of the 4 cash-rich small cap stocks offering passive income. You can view the company website here. As you can see from the above, small-cap companies do give consistent and steady dividends other than the blue-chips. Investors just need to dig out these gems and invest in them. I don’t just recommend stocks — I guide you through your entire wealth journey. Connect with me via telegram here for a friendly chat on how to craft a passive income plan that grows with you. Disclaimer: Please note this article is written for educational purpose only. The the stocks mentioned in this article is not a financial recommendation to buy or sell and investors need to do their own research and due diligence before investing in any of these stocks.