Money, Money, Money: RE Royalties, Aumann and Pfizer Put Dividend Investors in the Money

A Dividend Gem from Canada

Of particular interest to dividend hunters is a Canadian stock that remains relatively unknown in this country: RE Royalties. This Canadian specialized financier of the energy transition offers investors a yield currently exceeding 10%.** Double-digit dividend yields on the stock market should generally be viewed with some caution, as they either stem from a cyclical business model or are distorted by a one-time event—such as the sale of company assets—and are therefore not sustainable.

In the case of RE Royalties, however, the business model ensures the high dividend payout over the long term. The North American company does not operate wind turbines or solar farms itself. Instead, it provides capital to external developers for renewable energy projects and, in return, receives a share of gross revenue. The company has consistently applied the royalty model, already familiar from the commodities sector, to renewable energy, thereby operating a highly profitable business model in a booming market. RE Royalties benefits from an excellent interest margin. While the company refinances itself through green bonds yielding 6 to 9%, the licensed investments it makes typically target double-digit returns. The margin is attractive, but long-term royalties are financed with relatively short-term bonds. Repayments, new funding, and project cash flows must work together reliably. After all, Revolve Renewable Power most recently repaid CAD 2.4 million in full, while the royalties remained intact.

The royalty structure has the decisive advantage that revenue does not depend on operators' costs. Rising construction, maintenance, or financing costs remain with the respective project companies and thus do not burden RE Royalties. For the company, the only thing that counts is the revenue from the plants, which is secured through long-term power purchase agreements. This ensures stable, predictable, and largely inflation-resistant cash flows. It is precisely these regular cash inflows from lucrative licensing deals that form the basis for the high dividend.

According to a recent company presentation, since its founding, more than CAD 82 million has been successfully invested across 27 completed transactions in over 130 solar, wind, storage, hydro, and biogas projects, resulting in an average internal rate of return (IRR) of an impressive 16% and an attractive money-on-invested-capital factor of 1.54, which in turn has generated high profit shares for investors. More than 80% of the projects are located in Canada and the US. Approximately 41% of the pipeline comes from existing or repeat customers.

For 25 quarters now, RE Royalties has reliably paid out CAD 0.01 per share—without cuts or interruptions. The dividend is therefore not a short-term lure, but demonstrates that the business model works—and is growing steadily. After all, the energy transition is devouring enormous sums of money. Project developers in the cleantech sector, in particular, are seeking substantial capital that, as far as possible, does not dilute their voting rights and equity stakes through financing measures. RE had long distributed CAD 0.01 per quarter. In December 2025, however, the Board of Directors switched to annual decisions, which should not reduce the bottom-line return. Analysts therefore expect an annual dividend of CAD 0.04.

The asymmetric financing structure offered by RE Royalties' business model is driving high demand. The potential deal pipeline is brimming with a financing volume of over CAD 200 million. This forms the basis for future cash flows and the continued payment of high dividends. Currently, the regional focus of the projects remains in North America, but given the steadily rising demand from the cleantech industry and a stock market listing in Germany, the company is likely to attract significant new capital from Europe in the foreseeable future, thereby accelerating its growth.

The partnership with Solaris Energy represents the next step in this growth. In early August, RE invested a third tranche of USD 1 million, increasing its commitment to USD 4.8 million. This will finance royalties on 16 decentralized US solar projects totaling 15.24 megawatts. An agreed-upon minimum return is to be achieved over an initial period of 25 years; after which the royalties will continue for the remainder of the projects' lifespans. A letter of intent even provides for an expansion to USD 67.5 million. In addition to the USD 4.8 million already invested, this includes USD 13.7 million for 13 secured projects totaling 48 megawatts, as well as an additional USD 49 million for 83 projects in development.

The combination of a double-digit dividend yield, structural growth, and a defensive cash flow profile is rare; yet the stock still flies under the radar, especially across Europe, and is frequently overlooked. For bold investors, however, this presents a good opportunity. If management succeeds in convincing new investors of the business model, the stock has significant upside potential. Management is also exploring strategic options such as partnerships or even a sale to external investors. Should an exit occur, the price is likely to be well above the current market capitalization of approximately CAD 17 million, given the full project pipeline.

Given its low market capitalization, this penny stock is generally better suited to very risk-conscious dividend hunters, who should keep a close eye on their holdings after purchase and protect them with a stop-loss order. On August 27, RE Royalties will also release its second-quarter results. Investors who want to play it safe should wait until the financial results are released before buying.

Aumann: High Dividend, Strong Balance Sheet

Investors in the German machinery manufacturer Aumann can look forward to a generous dividend in early September. The Executive Board and Supervisory Board plan to propose a dividend of EUR 1.11 per share at the annual shareholders' meeting on August 28. Of this amount, EUR 0.25 represents the regular dividend and EUR 0.86 a special payment. At the current share price of EUR 14.20, this translates to a substantial yield of 7.8%. The payment is scheduled for September 2.

There is a special tax consideration: EUR 0.74 per share is paid from the tax-deferred account and is therefore initially not subject to tax withholding. However, investors are not simply given this amount as a gift. The distribution reduces the tax basis, meaning that a correspondingly higher capital gain may result upon a later sale.

Aumann's operating business currently presents a mixed picture. The automotive industry's reluctance to invest drove revenue down by 34.8% to EUR 70.6 million in the first half of the year. Despite the significant decline, Aumann maintained a respectable EBITDA margin of 10.5%. This speaks to the mechanical engineering company's strong cost discipline. At the same time, the company is making progress in broadening its business. In the "Next Automation" segment, which includes applications for cleantech, aerospace, and life sciences, revenue rose by 23% to EUR 23.2 million. Order intake grew even more dynamically, rising by 72% to EUR 37.7 million. The book-to-bill ratio thus reached 1.63. The segment's order backlog grew by just under 32% to EUR 61.9 million, now accounting for more than half of the Group's total backlog. Dependence on the automotive industry is thus gradually decreasing.

For the full year 2026, management continues to expect revenue of approximately EUR 160 million and an EBITDA margin between 6% and 8%. Analyst estimates are in a similar range, with revenue of EUR 158.6 million and earnings of EUR 0.50 per share. On this basis, the stock has a P/E ratio of just under 29 and does not appear cheap at first glance.

However, a look at the balance sheet puts this valuation into perspective. At the end of June, Aumann had net liquidity of EUR 154.4 million. After deducting approximately EUR 23 million for the share buyback in July and just under EUR 13 million for the dividend, about EUR 118 million should remain. This means that nearly two-thirds of the market capitalization would still be covered by net cash.

On the day after the annual shareholders' meeting, the stock is expected to trade at a dividend discount. The high yield is therefore not a free gain. For longer-term investors, however, the combination of enormous financial strength, high dividends, and growing business outside the automotive industry remains attractive.

Pfizer: The World's Most Attractive Dividend Aristocrat

For those who place greater value on reliability than on the last percentage point of yield in dividends, Pfizer offers an interesting alternative to RE Royalties and Aumann. With a dividend yield of over 6% expected for 2026, the US pharmaceutical company ranks among the world's most attractive dividend aristocrats. Pfizer has paid a dividend every year for the past 20 years; over the past 10 years, it has at least remained stable each year and has been regularly increased.

Currently, the company pays its shareholders USD 0.43 per share quarterly. Extrapolated, that amounts to USD 1.72 per year. At a share price of USD 27.97, this translates to a yield of about 6.2%. The next payment is scheduled for September 1. However, the record date for this payment was already set for July 24, so investors who buy the stock now will not be eligible for the following quarterly dividend.

Operationally, Pfizer is not yet on autopilot. The COVID-19 boom is a thing of the past, while patent expirations and the costs of past acquisitions are weighing on the company. In the second quarter, revenue rose by only 3% to USD 15 billion. Excluding Comirnaty and Paxlovid, however, operating growth stood at 5%, and newly launched and acquired products even increased by 18%. Pfizer raised the midpoint of its 2026 revenue forecast by USD 500 million to USD 61.5 billion and confirmed adjusted earnings per share of USD 2.80 to USD 3.00.

As a result, the annualized dividend accounts for approximately 57% to 61% of adjusted earnings. That is not lavish, but it is sufficiently covered. The large GAAP loss in the second quarter was also largely due to non-cash impairment charges of USD 4.3 billion. Pfizer remains, however, a turnaround play. Its pipeline must offset the upcoming patent expirations while simultaneously reducing debt.

Among the three dividend candidates presented, Pfizer has the most reliable dividend history. RE Royalties offers the greatest upside potential alongside a high dividend. At Aumann, on the other hand, dividend hunters will find the most lucrative one-time gain in the short term.