BIG NEWS at Nordex! OpenAI fuels the AI energy boom! Siemens Energy and dividend stock RE Royalties benefit

RE Royalties: Energy insider tip with a dividend yield of over 10%

Investments in renewable energy are not generally known for high dividend payouts. On the contrary. Unless significant investments in research and development are required, the margins are just enough to finance further growth. The situation is different at RE Royalties. The Company finances more than 100 projects in the solar, wind, and hydropower sectors. The Canadians use the continuous revenue streams to fund growth and pay an attractive dividend. Currently, shareholders can expect a payment of CAD 0.04 per share. The stock is currently trading at CAD 0.30, resulting in a dividend yield of over 13%.

In an interview with the International Investment Forum (IIF), CEO Bernard Tan explained how RE Royalties is successfully adapting the royalty financing model from the commodities industry to the renewable energy sector. The Company combines loans with royalty interests: project developers receive capital without giving up shares, while RE Royalties secures a small share of future revenues in return. This structure allows the same funds to be used multiple times, as the loans are typically repaid within two to three years, and the capital can then be reinvested. Tan emphasized that income from the projects can be forecasted over the long term, often via 20-40 year power purchase agreements, thereby generating stable, annuity-like returns.

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

At the same time, Tan emphasized that risk management and diversification are central pillars of the Company's strategy. RE Royalties invests exclusively in commercially proven technologies and avoids experimental concepts. The Company focuses on operational plants with reliable production and inflation protection, which provides stability even in phases of rising interest rates. Through regional diversification, currently strong growth in the US, but also projects in Canada, Asia, and Africa, Tan aims to reduce dependence on political subsidy programs. According to him, growth, dividend yield, and capital protection are not contradictions, but rather the result of a model that pays for itself through recurring returns and carefully vetted projects.

Siemens Energy: Market valuation too high?

Good news for RE Royalties and Siemens Energy. Both companies can look forward to a continuation of the AI energy hype. In the US, OpenAI has called on the US government to push ahead with energy production. Expansion must be accelerated in order to keep pace with China in the global competition for artificial intelligence. The Company is currently planning to build huge data centers, whose electricity requirements are likely to put additional strain on the already tight energy supply in the US. In a blog post, OpenAI emphasized that electricity is much more than just a utility service. Instead, it is a strategic factor that could determine the United States' technological leadership in the AI age.

The question is how much of these strong business prospects are already priced into Siemens Energy's share price. After all, following a performance of more than 1,000% since the end of 2023, the DAX-listed company is now worth almost EUR 90 billion on the stock market. Analysts have recently put the brakes on the euphoria. DZ Bank confirmed its "Sell" rating. Although the price target was raised from EUR 68 to EUR 74, it remains below the current price level of EUR 102. DZ analysts warn of the risk of a setback in the upcoming figures. Market expectations are very high, they say, and Siemens Energy is likely to barely meet them at best. Investors will find out whether this is true on November 14, 2025, when the DAX-listed company reports on its performance in the fourth quarter of the 2024/25 fiscal year.

Nordex: Up more than 18% yesterday

With a jump in price of more than 18%, Nordex shares were among the top performers in the German indices yesterday. The reason: as part of the publication of preliminary figures for the third quarter of 2025, the forecast for the full year was raised. The wind turbine manufacturer now expects an EBITDA margin of 7.5% to 8.5% for the current year. Previously, the forecast was 5% to 7%. Nordex attributes the upward revision to strong operational performance in both business segments – Projects and Service – as well as a stable macroeconomic environment.

Nordex CEO José Luis Blanco commented: "Our teams delivered exceptionally well in the third quarter. For the rest of the year, we are confident that we can significantly increase profitability compared to 2024. We remain focused on profitable growth and creating long-term value for our shareholders." According to preliminary calculations, Nordex generated sales of around EUR 1.71 billion in the third quarter (Q3/2024: EUR 1.67 billion). EBITDA reached EUR 136 million, significantly above the EUR 72 million recorded in the same quarter of the previous year.

The AI boom is further fueling the hunger for energy. This is likely to benefit not only Siemens Energy but also RE Royalties. The Canadian company's innovative business model combines growth with an attractive dividend. The share price does not yet reflect this. Nordex is currently riding a wave of success. However, investors should be aware that an EBITDA margin of 8% can quickly melt away if problems arise.