Dividend hunters take note! 10% with RE Royalties, dividend surprise at BMW, will Mutares now follow suit?

RE Royalties – Will the stock finally be discovered?

The Canadians are the first company to establish the royalty financing model, already well-established in many industries such as pharmaceuticals, biotech, technology, and commodities, in the renewable energy sector.

RE Royalties grants loans and, in return, acquires revenue-based royalties in the form of a share of sales from private and publicly traded companies. The loans are usually repaid within a few years, while the royalty payments often run for 20 or 25 years.

The company currently owns over 120 licensing models for projects in the fields of solar, wind, water, battery storage, energy efficiency, and renewable natural gas in North America, South America, and Asia.

Most recently, the Canadians increased their investments in the solar sector in the US. There, they are cooperating with Solaris Energy, a company based in the state of Colorado. As part of this collaboration, RE Royalties has already invested a total of USD 4.8 million in 15 projects in several US states, the first of which are about to go into operation. In general, RE Royalties' financing arrangements are attracting considerable interest in industry. The Canadians currently estimate the expressions of interest at CAD 50 million.

RE Royalties shares give shareholders access to an attractive and highly diversified portfolio. Shareholders also benefit from a generous dividend policy. In recent years, CAD 0.04 per annum has been distributed. At a current price of CAD 0.40 per share, this represents a high dividend yield of 10%! The company is also moderately valued with a market capitalization of around CAD 17 million.

https://youtu.be/n_aO2Hv12p4

Mutares – An early dividend surprise?

In a few days, on March 16, the Munich-based investment specialist will present its preliminary key figures for the past financial year, followed by the publication of its annual report at the end of April. The group has forecast consolidated revenue in the range of EUR 6.5 to 7.5 billion and a net income for the holding company of between EUR 130 and 160 million. A dividend surprise could be in the offing, which would certainly have a positive impact on the share price. Analysts are currently forecasting an average dividend of EUR 2 per share, which represents a generous dividend yield of 7%.

Mutares specializes in carve-outs and turnaround situations. This means that the company buys companies or parts of companies from corporations that no longer fit their core business, restructures them operationally, and later sells them at a profit. Typically, an exit takes place after 3 to 7 years to a strategist, financial investor, or via an IPO. The company reports transactions on a weekly basis, so to speak, and, as developments in recent years show, earns a lot of money from them.

Shareholders benefit from the company's success through the distribution of a base dividend of EUR 2. In addition, there is a variable component, the performance dividend, which gives shareholders an extra treat when profits are particularly high in a fiscal year. This could now be the case, as Mutares has made numerous profitable sales in 2025. First and foremost among these is the complete sale of its stake in Steyr Motors.

Looking at the medium-term outlook, the Group is forecasting consolidated revenue of EUR 10 billion and a profit of EUR 200 million for the holding company in 2028. If the largest acquisition in the company's history, announced two months ago, goes ahead as planned in the course of the year, the targets could be achieved as early as 2027. The Munich-based company plans to acquire the Engineering Thermoplastics (ETP) business in America and Europe from the Saudi Arabian chemical and metal group Sabic.

What does this mean for shareholders today? There is a good chance that Mutares will pay a dividend of EUR 3 in just two years. Forward-thinking investors are therefore adding a soon-to-be ten percenter to their portfolios today. Analysts are forecasting an average price target of EUR 41.50 for the share – an upside of over 40%!

BMW – Dividend increase despite falling profits

Automotive companies have had a challenging year. The recently published figures from industry representatives speak for themselves. BMW has performed well in this environment compared to its competitors. Last year, the automaker suffered a 3% decline in profits to EUR 7.45 billion. This reduction was significantly lower than the decline in revenue. Revenues fell by 6.3% to EUR 133.5 billion in 2025. US import tariffs and a weakening market in China proved to be negative factors.

Despite the decline in profits, the Bavarian company is now promising a slight dividend increase from EUR 0.10 to EUR 4.40 for common shares, corresponding to an attractive dividend yield of 5.5%. BMW remains cautious for the current fiscal year and expects a slight decline in pre-tax profits.

Although deliveries remain stable, tariffs, currency effects, and high raw material prices are identified as negative factors. Analysts believe the stock has upside potential of 15% over a 12-month period.

RE Royalties has pioneered the introduction of the royalty financing model, already established in other industries, into the world of renewable energy. Shareholders gain access to a broadly diversified portfolio of over 120 projects across countries and energy types, and also benefit from a generous dividend yield of 10%! BMW has performed comparatively well in a difficult market environment. An attractive dividend yield of 5.5% is expected in the summer. Forward-thinking investors can already add a 10% stake to their portfolios with Mutares.