Safe havens with dividends of almost 10%: RE Royalties, Enbridge, Realty Income

Dividends do not automatically mean security

Dividend stocks are one thing; truly stable income generators are another. Just because a company pays a high dividend based on its current share price does not mean that an investment is truly crisis-proof. All too often, companies have had to drastically reduce their distributions during crises. This happens, for example, when the liquidity situation becomes threatening or there are simply no more income streams because the business is collapsing. The Canadian royalty company RE Royalties, on the other hand, is in a much more stable position.

RE Royalties generates low-risk returns with renewable energy

The renewable energy experts are pioneers when it comes to applying the royalty approach known from the oil and gas industry to energy parks. RE Royalties provides capital to operators of solar, wind, hydroelectric, or battery storage projects and, in return, receives ongoing revenue shares in the form of royalties from electricity generation. This business model is designed to promote the expansion of clean energy while securing predictable returns for shareholders. In fact, the current dividend yield is around 9% per annum. Since 2020, the Company has paid out a cent in dividends every quarter.

RE Royalties has a total of around 100 royalty streams from renewables in its portfolio and also diversifies these regionally. This pays off: just this year, the Company invested USD 9 million in the form of a loan in a wind farm with a capacity of 9.6 MW in the US. The terms are impressive, with 12% interest and a 5% share of revenue. Such combinations of royalties and interest enable high gross margins, as the ongoing operating costs are low. As a result, capital remains available for further investments. RE Royalties also finances itself through green bonds. The Company recently raised CAD 6.2 million in the form of a green bond. The coupon is 9% and the term runs until 2029. The bonds are secured by the royalty portfolio and will be used to expand into further projects. RE Royalties could therefore be of interest to professional investors who like to invest in combinations of shares and associated bonds.

Enbridge: Pipeline operator benefiting even in turbulent times

While RE Royalties is breaking new ground with its combination of royalties and renewable energy, Enbridge remains a classic dividend stock. The Canadian company is one of North America's largest energy infrastructure groups. Its core business comprises pipeline transportation of oil and gas, supplemented by gas supply networks and renewable energy projects. Enbridge operates a gigantic network of oil pipelines from Alberta, Canada, to the US, including the Mainline system, which moves roughly 3 million barrels of oil per day. The Company also manages natural gas pipelines, storage facilities, and gas distribution networks across Canada, as well as offshore wind farms in Europe. This diversified portfolio generates stable cash flow and underpins Enbridge's reputation as a reliable dividend payer.**

From pipelines to renewables to real estate – Predictable cash flows increasingly in demand

As pipelines increasingly fail due to local opposition, the market leader benefits - its existing pipelines are simply worth more because of protests and high barriers to entry. Enbridge has again slightly increased its quarterly dividend for 2025. The dividend yield is currently around 5.6%. Realty Income offers an almost identical dividend yield of 5.7%. The real estate company, specializing in commercial properties, pays out monthly and has achieved a certain degree of notoriety with this practice.** The 132 individual dividend increases since its IPO in 1994 also attract many fans. Although real estate investments are always sensitive to interest rates, Realty Income is considered a major player in the sector and has proven in the past to handle refinancing well.

While the stock market is discussing AI trends and the next NVIDIA, dividend stocks such as RE Royalties, Enbridge, and Realty Income remind us of the virtues of solid business models. They may not dominate the headlines, but they offer predictable cash flows and downside protection. DWS CEO Hoops' warning about a possible AI bubble underscores the importance of diversification beyond hyped sectors. High-yield stocks may be one answer here.

RE Royalties outperforms dividend aristocrats in terms of yield

RE Royalties demonstrates that sustainable investing and attractive returns are not mutually exclusive. The royalty model in renewable energy delivers near double-digit returns, with a dividend yield of around 9%, while remaining sustainable. The green bonds issued by the company may also appeal to specialized investors. Meanwhile, Enbridge and Realty Income continue to generate strong cash flows. Negative points here, however, are the lower dividend yield, the prospect of dwindling fossil fuel business in the case of the pipeline operator, and the cyclical nature of real estate investments in the commercial sector. RE Royalties shares remain largely under the radar. For investors seeking high-yield safe havens, it deserves closer attention.