Hensoldt forges drone alliance! Nordex peaked? Over 10% dividend with RE Royalties

RE Royalties: 10% dividend yield and price potential

High dividends, price potential, and a contribution to climate and environmental protection: investors get all this when they invest in RE Royalties.

The Canadian company has an innovative business model in the renewable energy sector: RE Royalties provides capital to companies looking to implement solar, wind, hydro, and energy storage projects. In return, it receives interest and so-called royalty agreements - i.e., a percentage of future revenues or profits from these plants. This model has been well-established and successful in the commodities and real estate sectors for years. RE Royalties is a first mover in renewable energy and has grown by an average of 38% per year from 2020 to 2024.

Co-founder and CEO Bernard Tan recently provided a fascinating insight into the Company in an interview Link to YouTube video with the International Investment Forum (IIF).

https://youtu.be/sKWA0kb1A_s?si=dZLca0_wo7iRoAr-

RE Royalties' portfolio now comprises over 100 projects – over 80% of which are in Canada or the US – and covers an installed capacity of several hundred megawatts. This enables RE Royalties to generate regular diversified revenues. The income enables the distribution of an attractive dividend. Shareholders can currently expect a payment of CAD 0.04. The share is currently trading at CAD 0.33.

Hensoldt: Drone alliance fizzles out

Hensoldt is forging a German drone alliance with Avilus. Recently, this news would likely have caused a jump in the share price, but defense stocks are currently consolidating, and the news did not provide any significant momentum. Hensoldt and drone manufacturer Avilus have agreed on a strategic partnership. Together, they will develop and market innovative sensor and ISR (intelligence, surveillance, reconnaissance) systems for unmanned aerial vehicles. The integration of Hensoldt's technologies – including the high-performance electro-optical system, the AMPS-M self-protection system, and the software-defined "PrecISR" radar – with the Avilus "MissMarvin" mission system will produce scalable drone platforms suitable for both military and civilian applications. The focus is on technological independence, rapid deployability, and strengthening German UAV expertise.

The integrated systems provide comprehensive real-time situational awareness and analysis: Multispectral sensors with AI evaluation, radar-based all-round vision, and self-protection solutions against missile or laser threats make the platforms highly versatile – from disaster control and border security to military reconnaissance. Thanks to approval from the Federal Aviation Authority for civil flights and the "company-owned, company-operated" model, initial demonstrations are already underway. Through this partnership, Hensoldt aims to advance its "Software Defined Defense" strategy and set new standards in European drone technology.

Nordex: Stock exhausted after 100% gain?

Nordex shares are arguably one of the surprises of the current year, especially when compared to other stocks in the sector, such as Orsted (-34%) or Vestas (+22%). But has the stock reached its peak after rising 100%? More and more analysts seem to believe so.

According to marketscreener.com, 12 out of 14 analysts recommend buying Nordex shares. However, the average price target is EUR 23.64, which is the current level. Even at the highest price target of EUR 26.50, there is little chance of a return.

Deutsche Bank recently raised its price target slightly from EUR 23 to EUR 26. The "Buy" recommendation was confirmed. However, companies such as Siemens Energy and Schneider Electric are preferred in the sector. Otherwise, analysts have been reluctant to raise their price targets so far. Jefferies recently confirmed its "Buy" recommendation. However, the experts see the fair value at EUR 25, which is barely above the current level.

The only Nordex bear at present is RBC. Analysts do not currently see any revival in demand. This is likely to start next year at the earliest. As a result, experts have significantly reduced their earnings estimates for 2026. They are therefore sticking to their "Underperform" rating for Nordex shares, and the price target is EUR 18.50. In their view, this means there is currently potential for a setback of almost 25%.

RE Royalties shares currently offer a dividend yield of over 10% and upside potential. The business model is innovative, and the track record of recent years is impressive. Nordex has experienced very volatile performance in recent years. The stock has performed well this year, and it may now be time to take profits. Hensoldt is currently undergoing a correction.