AI fantasy, takeover rumors, and a 14% dividend: TKMS, TeamViewer, RE Royalties

RE Royalties: 14% dividend yield

Dividend hunters take note. RE Royalties currently offers a dividend yield of 14%. The Canadians have successfully transferred the license financing model known from the raw materials industry to the renewable energy sector. RE Royalties combines loans with license participations. Project developers receive capital without having to give up shares. Instead, RE Royalties participates in future revenues. The Company now finances over 100 projects in the solar, wind, and hydroelectric power sectors. RE Royalties is a first mover in renewable energy and has grown by an average of 38% per year from 2020 to 2024.

It is currently growing strongly, particularly in the US, and is likely to benefit from the energy hunger of AI data centers. It is becoming increasingly clear that the AI race between the US and China will not be decided by the fastest semiconductors, but by extensive and cost-effective energy infrastructure.

Revenue from the projects can be planned for the long term, for example, due to 20- to 40-year power purchase agreements, thus generating stable income. This allows RE Royalties to grow while paying a high dividend to shareholders. The current dividend is expected to be CAD 0.04. RE Royalties shares are trading at CAD 0.28, putting the dividend yield at a strong 14%.

https://youtu.be/sKWA0kb1A_s?si=-lYMwJqTH9quOpIQ

TKMS: Takeover rumors

Is TKMS strengthening its position shortly after going public with a takeover? The Kieler Nachrichten newspaper recently reported that German Naval Yard Kiel (GNYK) is "about to be taken over" by its direct neighbor Thyssenkrupp Marine Systems (TKMS). According to the article, "only the details are still being worked out." There has been no confirmation from the companies involved so far – these are purely rumors.

Strategically, such a deal would make sense and reflect the ongoing consolidation trend in the industry. Following the spin-off and with full order books, TKMS has repeatedly addressed capacity bottlenecks and already took over the Wismar site from MV Werften in 2022. At the same time, the German surface shipbuilding landscape is in flux – most recently due to Rheinmetall's entry into the Lürssen/NVL Group and the discussions surrounding the stalled F126 frigate program. Against this backdrop, integrating GNYK's dock capacities in Kiel – located right next door to TKMS – could shorten cycle times and reduce risks in shipbuilding.

The sticking point would remain the ownership side and the regulatory environment. GNYK is part of the European shipbuilding group CMN Naval (formerly Privinvest/CMN). A sale would require approvals from the owner, antitrust authorities, and security policy reviews. Not only the federal government, but also other governments are increasingly involved in overseeing large contracts and mergers in this sector.

TeamViewer: Can AI fantasy stop the downward trend?

TeamViewer's stock cannot seem to find a bottom. After peaking at EUR 13.55 in May, the stock took a sharp dive. On Wednesday, the stock slipped below the EUR 6 mark.

Even AI hype cannot end the downward trend. TeamViewer has reported growing interest in its AI solutions. Three months after the global launch, usage figures are rising significantly. The Session Insights add-on has automatically summarized more than 270,000 remote support sessions, with volumes from August to October quadrupling compared to the previous quarter. Around 10,000 customers have activated the AI functions. Many IT teams report noticeable efficiency gains. Tickets can be resolved up to 25% faster, and documentation takes about ten minutes less per case on average.

TeamViewer aims to use this momentum for the next step. Based on numerous support sessions, telemetry data from millions of end devices, and over 645,000 paying customers, the Company is working on AI agents for even more automated IT support. Functions from the acquired specialist 1E are intended to help expand these capabilities. New solutions will be presented at Microsoft Ignite in San Francisco from November 18 to 25.

So far, there have been no official announcements from CMN Naval, GNYK, or TKMS regarding a possible deal. The story is plausible, but still unconfirmed – stock price reactions to headlines should be viewed with caution. Caution is also still warranted with TeamViewer. In contrast, RE Royalties appears to be a real bargain. It is incomprehensible why a company with such a long track record is trading so cheaply and with such a dividend yield.