Oil Price at USD 150? Is Now the Time to Buy Energy Stocks? Siemens Energy, SMA Solar, and Dividend Star RE Royalties

RE Royalties: Opportunity to Buy or Add to Positions

Since late December, RE Royalties' stock has finally risen significantly. The rally was also urgently needed, as the dividend yield of this financier of renewable energy projects had at times reached an absurd 15%. In recent days, the stock, which is also traded on Tradegate, has fallen from CAD 0.42 to CAD 0.39. With a dividend of CAD 0.04, the yield is thus back above 10%. And this is not the only reason to buy the stock.

RE Royalties benefits from an energy market in which electricity in North America, even before the current oil and gas crisis, is becoming increasingly valuable. The growing demand from data centers, AI applications, and electrification is meeting overburdened or outdated grids in many places. That is why decentralized solutions such as solar and storage projects are gaining significant importance. This is exactly where RE Royalties is positioned.

RE Royalties has developed a compelling business model: the company adapts the royalty approach, well-known in mining, to the renewable energy sector. Project developers receive upfront capital without diluting ownership, while RE Royalties secures long-term revenue streams. The focus is on proven technologies such as solar, wind, hydroelectric power, and energy storage. This model is particularly appealing because early returns can be reinvested into new projects, and royalty payments continue to generate income for many years.

Of particular interest is the company's strong presence in the US. There, RE Royalties is working with Solaris Energy, among others, on portfolios of decentralized solar projects across several states. This secures the company access to a market where the expansion of clean and flexibly available energy is becoming increasingly important. RE Royalties thus combines the major trends of the energy transition, decentralization, and rising electricity demand into a business model designed for long-term, recurring income.

The current pullback, therefore, appears to be a buying opportunity.

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SMA Solar: Is the rally over?

Yesterday, SMA Solar's stock lost over 4% in value at one point. Then it actually moved back into positive territory. Will the rally continue now? It seems too early to answer that with a yes. After all, the SDAX company's stock had previously gained over 30% since early March. Even after the recent sell-off to around EUR 37.60, the stock is still trading 84% higher than six months ago.

The company appears to be achieving an operational turnaround. Following a challenging 2025 marked by high write-downs and negative one-time effects, the business is expected to improve operationally in 2026. In early March, SMA Solar published a revenue forecast for 2026 of EUR 1.475 to 1.675 billion. EBITDA is expected to return to positive territory, ranging between EUR 50 million and EUR 180 million. Revenue is projected to grow slightly in the high-margin large-scale project business, and growth is also planned for the Home & Business Solutions segment, which has recently been weak.

This suggests that the technology company's restructuring is working. According to its own figures, SMA has already achieved cost savings of EUR 124 million in 2025. In addition, further measures are expected to contribute an additional EUR 100 million to earnings starting in 2027. At the same time, the company has strengthened its international presence.

Given its market capitalization of EUR 1.37 billion, SMA does not appear to be overvalued. However, analysts' opinions regarding the stock's fair value currently vary widely. Jefferies recently reaffirmed its "Buy" recommendation with a price target of EUR 39. Deutsche Bank has raised its price target, but only from EUR 17 to EUR 28.

Siemens Energy: Dividend rises, but...

Even Siemens Energy shareholders, who are used to strong performance, need strong nerves right now. By yesterday morning, the stock had plummeted from EUR 169 to below EUR 135 in just a few days. By yesterday afternoon, it had rebounded to over EUR 148. While a dividend of 9 to 10% at RE Royalties offers shareholders some comfort during price declines, the figure at Siemens Energy is less than 1%. However, shareholders of the DAX-listed company can look forward to rising dividends.

Analysts at mwb research expect Siemens Energy to pay out EUR 1.85 for the current fiscal year, up from EUR 0.70 for the previous one. For the coming fiscal year, experts expect earnings per share of EUR 4.94 and a dividend per share of EUR 2.47. Given the current share price, the P/E ratio for fiscal year 2026/27 stands at 27 and the dividend yield at 1.8%. However, this is not enough for the analysts to issue a "Buy" recommendation. On the contrary. They most recently rated Siemens Energy stock as "Sell" and see its fair value at EUR 89. The reason: Siemens Energy is currently benefiting massively from the high demand for gas turbines. However, sharply rising gas prices could cause demand to drop significantly.

Bernstein Research is less pessimistic. Its analysts have a price target of EUR 150 for the DAX-listed company's stock and rate it "Outperform."

The stock market is currently not for the faint of heart. But this also creates buying opportunities. There is much to suggest that RE Royalties shares will continue their upward trend. And until then, shareholders can look forward to the high dividend. Siemens Energy is also a good buy on weak days. SMA Solar remains a bet on a turnaround. The price-to-sales ratio is certainly attractive, but the company needs to become more profitable.