Forget the Risk: Secure Solid Cash Flows with Allianz, RE Royalties, and Deutsche Telekom

Allianz: Asia Deal and a Streamlined Executive Board

Allianz is pushing ahead with its share buyback program at an unusually fast pace this summer. The volume of up to EUR 2.5 billion launched in March is being exhausted much faster than planned. By the end of April, shares worth approximately EUR 1.5 billion had been taken off the market, which corresponds to about 60% of the total volume. Weekly buybacks fluctuated, at times quite sharply. By consistently buying back shares even as prices rise, management is demonstrating that it considers the company's valuation attractive. For investors, this is a clear commitment to shareholder-friendly capital allocation.

The first quarter laid the foundation for this positive trend with a record operating profit of EUR 4.5 billion. The property and casualty business proved particularly profitable, with an improved combined ratio of 91.0%. At the same time, the Group is taking proactive steps. The acquisition of HSBC Life in Singapore for EUR 2 billion secures an exclusive distribution partnership and expands access to the growing Asian market. This acquisition is expected to boost returns in the medium term. At the same time, the investment underscores the strategic focus on the region.

The Executive Board will be reduced to eight members at the end of the year. This is intended to increase efficiency and consolidate expertise. For income-oriented investors, the stock remains an attractive investment. The 2025 dividend of EUR 17.10 represents a dividend yield of nearly 4% at the current share price of EUR 430.60. Taking the ongoing share buyback into account, the total capital return for 2026 will increase further. This is an attractive overall package that underscores the Group's focus on shareholders without jeopardizing its capital strength.

RE Royalties: Financing the Energy Transition

The Canadian company RE Royalties has established itself in the renewable energy market with an unconventional approach. Instead of traditional loans, the financier provides project developers with capital in exchange for a share of future revenues. Since 2016, over CAD 80 million has been invested in more than 135 projects. The spectrum ranges from solar and wind power to energy storage and renewable gas. Between January and February 2026, USD 3.8 million was provided for the first of two planned solar portfolios by Solaris Energy. The total commitment for both stands at up to USD 9 million. At the end of March 2026, a strategic review was initiated to explore options such as a sale of the company or new capital partnerships. PricewaterhouseCoopers is assisting with this process. With approximately CAD 20 million in concrete letters of intent and an additional CAD 200 million in the pipeline, the growth potential remains intact.

The business model targets a gap in the market. Mid-sized developers with project volumes between CAD 10 million and CAD 30 million are often overlooked by banks. This is where RE Royalties steps in. The unleveraged internal rate of return has been over 19% since the company's founding, and revenue growth over the past five years has averaged around 60% annually. Over 80% of the portfolio is located in North America, which limits geographic risks. 41% of the pipeline comes from existing customers. This is a sign of trust and recurring business. The high level of insider ownership also signals that management and shareholders are aligned. The combination of long-term royalty agreements and short-term loans provides the company with flexibility.

For income investors, RE Royalties remains an exciting opportunity. The company most recently paid CAD 0.01 per share per quarter. That amounts to an annualized CAD 0.04. At a current share price of CAD 0.39, this results in a potential dividend yield of around 10.3%. Management has deliberately made the dividend policy more flexible. Future dividends will be decided annually by the board, based on liquidity, cash flow, and capital allocation. This change gives the company more leeway for growth investments without compromising its attractive dividend policy. The combination of high returns, strategic realignment, and a growing market for revenue-based financing makes this investment attractive to long-term investors.

Deutsche Telekom: Between Share Buyback Pace and Growth Concerns

Deutsche Telekom is continuing to push ahead with its share buyback program at full speed. The third 2026 tranche, totaling up to EUR 560 million, runs through the end of September. Between July 13 and 17, the company purchased 1.35 million of its own shares at an average price of EUR 26.73 per share. Since July, the total has reached 3.67 million shares. The company is supporting the share price through sustained demand and demonstrating confidence in its own valuation. Board member Rodrigo Francisco Diehl also purchased 2,999 shares at EUR 24.64. For investors, this is a classic sign of confidence during challenging market conditions.

The US subsidiary T-Mobile remains the key value driver, but momentum is faltering. In the second quarter, 277,000 new postpaid customers were added, 13% fewer than in the previous year. Although postpaid service revenue grew by 13%, total revenue of USD 22.8 billion fell slightly short of expectations. The stock market reacted cautiously. Some analysts lowered their price targets; for example, Deutsche Bank Research reduced its target from EUR 42 to 40. JPMorgan maintained its EUR 40 target. In addition, the US subsidiary is feeling growing competitive pressure from satellite internet providers such as Starlink and AI infrastructure projects. These are increasingly changing the competitive landscape for traditional network operators.

The half-year results on August 6 will serve as a litmus test. The key question is whether the competitive pressure is actually reflected in the figures. Telekom remains attractive to dividend investors. The dividend of EUR 1.00 per share for 2025 has already been paid out, tax-free from the deposit account. The policy of distributing 40–60% of adjusted profit remains intact, supplemented by the ongoing share buyback program of approximately EUR 2 billion. EBITDA is projected to reach EUR 47.5 billion in 2026, with free cash flow at EUR 19.8 billion. The share is currently trading at around EUR 26.87.

All three candidates presented are attractive dividend stocks. Allianz impresses with record profits, accelerated share buybacks, and a solid yield of just under 4%, making it a stable anchor. RE Royalties, on the other hand, addresses energy financing with its niche model and entices investors with a generous yield of potentially over 10%, but is strategically facing a sale or a realignment. Finally, Deutsche Telekom impresses with generous capital returns but must increasingly address growth concerns at its US subsidiary, T-Mobile. This will be the litmus test for its future share price.