Dividend stocks with that certain something: RE Royalties, freenet, Porsche

freenet: How long will this continue?

When it comes to high-dividend stocks, many German investors spontaneously mention freenet shares. The Company currently pays out just under EUR 2 per share, corresponding to a dividend yield of around 7%. But what does freenet actually do? The Company is a telecommunications service provider without its own network: freenet acts as a virtual network operator, bundling mobile phone offers, digital TV, and streaming services under one umbrella brand. freenet generates continuous service revenues through the sale of mobile phone contracts and subscriptions. Thanks to cross-selling and a strong brand presence, its customer base remains robust: in June 2025, around 10.31 million customers used freenet, mainly in Germany.

freenet already distributes around 80% of its profits to shareholders. Although the Company is operating in a growth market with its streaming offerings, competitors are increasingly wanting a piece of the pie – and it is not certain that profits will continue to flow. freenet is likely to continue its dividend policy, but no company can afford to pay out "from its substance" for long. The dividend does not seem to be set in stone in the long term.

Porsche has to save money – Including on dividends?

Porsche AG shares are also considered a dividend payer. Listed on the stock exchange since 2022, the shares have now established themselves as a stable dividend stock – currently paying out around 5.4% annually to shareholders. But what is the situation at Porsche in terms of its operating business? The legendary sports car manufacturer, which is known not only for the 911 sports car but also for the Taycan, Panamera, Cayenne, and Macan, has recently found itself in dire straits. Business is not going well, especially in China. The operating margin has also collapsed. The Swabians, who are accustomed to success, are facing a reality check – for the first time in many years, Zuffenhausen is really cutting back. Although this is considered beneficial, shareholders may also have to contribute in the medium term. It is far from certain that Porsche's dividends will continue to flow forever.

RE Royalties: Renewable energy generates income and secures dividends

While operating performance determines dividend size at freenet and Porsche, RE Royalties offers an additional layer of security. The Company finances projects in the field of renewable energy - including solar, wind, hydropower, energy storage, and biomethane. Instead of buying shares in these projects or granting loans, RE Royalties secures long-term royalty payments on the revenues generated by the facilities. This non-dilutive model is unique in the industry. According to its annual report, RE Royalties is the first provider to apply this concept to renewables. Its portfolio currently comprises over 100 projects across North America, Latin America, and even Asia. This allows the Company to participate in the growth of renewable energy production with relatively little correlation to traditional markets. Since the royalty payments are contractually guaranteed, RE Royalties generates solid income streams. The Company passes these on to shareholders - currently, the Canadians pay an annual dividend of CAD 0.04 per share, corresponding to a dividend yield of around 10%, depending on the share price.

RE Royalties issues green bonds to finance investments in new renewable projects. These are bonds that are promoted because of their purpose and are in high demand among many institutional investors. RE Royalties emphasizes its intention to add further exciting projects to its portfolio and is confident about the future. The biggest challenge currently facing management is that RE Royalties is not yet known to many investors. The Company stands out from traditional utilities thanks to its focus on renewables and broad diversification with projects in different regions. Investors receive a combination of steady cash flow and participation in the growth of the green sector. At the same time, the business model is considered inflation-resistant, as royalties are often directly linked to revenues from the sale of energy.

Forward-thinking investors are eyeing RE Royalties bonds and shares

Risks lie in the still small size of RE Royalties – with a market capitalization of only around EUR 8 million, the Company is still a small player. However, if RE Royalties succeeds in further expanding its already impressive portfolio of over 100 projects, the Company could quickly reach a critical size. Bonds issued by RE Royalties could also be in demand. In addition to investors committed to renewables and seeking an attractive dividend, RE Royalties could also be a suitable partner for strategic investors. The combination of regular green bond issuances, expertise in sustainable energy projects, and a long-established dividend policy could be of particular interest to forward-thinking investors.