TUI pays dividends again, RE Royalties offers over 10% dividend, Allianz ensures stability – A strong income portfolio

TUI – Showing strength: Record profits and a return to dividends

The 2025 financial year was better than expected for the travel group. Operating profit, measured as adjusted EBIT, increased significantly and exceeded the Company's own forecast. This result was driven primarily by the strong Hotels & Resorts and Cruises segments. Here, higher occupancy rates and fares ensured record levels. Even the Markets + Airline segment, which is undergoing transformation and is under competitive and cost pressure, made a solid contribution to revenue. Overall, earnings per share also climbed sharply.

The Company has significantly streamlined its finances. Net debt was further reduced, leading to a significant improvement in balance sheet ratios. Rating agencies have also recognized this progress with upgrades. The resulting financial leeway now allows TUI to pursue a new capital expenditure plan. In addition to investments in growth, such as new hotels and ships, the return of funds to shareholders is now back on the agenda.

This leads to what is likely the most important news for investors: the return to dividends. An introductory dividend is proposed for 2025. From the coming fiscal year onwards, a reliable portion of earnings per share is to be distributed. This combined strategy of growth investments and shareholder remuneration has been met with widespread approval by analysts. Many see the positive operating performance and strengthened balance sheet as the foundation for further share price growth, even if some are critical of the moderate growth outlook for 2026. The share is currently trading at EUR 9.196.

RE Royalties – With a financing model for the energy transition

RE Royalties has established a business model that aims to combine stability with growth. The Company provides capital to project developers in the renewable energy sector. In return, it does not receive any company shares, but contractually agreed shares in the projects' revenues, known as royalties. This approach generates recurring cash flows linked to long-term power purchase agreements. The portfolio includes solar, wind, and storage projects in several countries, aiming for broad risk diversification.

On December 11, the Company reported several operational advances, with the focus set on developing new projects. Most recently, letters of intent totaling approximately CAD 50 million were signed for various short-term projects. Due diligence is currently underway. At the same time, existing financing for a solar and storage portfolio was extended by one year, and the terms improved. In addition, the repayment of an initial green bond issue of CAD 10 million has been largely completed. The final installment of CAD 300,000 is due in the first quarter of 2026. This is complemented by the appointment of an experienced financing expert to the Board of Directors and an additional listing in Frankfurt to increase the reach among investors.

The distribution policy is being readjusted. A dividend payment of CAD 0.01 per share has been declared again for January 2026. In the future, however, the Company intends to switch from quarterly to annual distributions. This decision is aimed at maintaining greater financial flexibility in order to be able to take advantage of high-growth investment opportunities more quickly. Extrapolated to a full year, the previous CAD 0.01 quarterly dividend would total CAD 0.04, implying a current yield of over 15%. The long-term dividend capacity is to be strengthened by temporarily retaining capital to finance the promising project pipeline.

The share is currently trading at CAD 0.26.

Allianz - Scores with strong figures and new partnerships

Allianz is in robust shape after nine months. Operating profit rose sharply and reached a record high. In light of this strong performance, the Management Board has revised its forecast for the full year upwards. It now expects operating profit to be at the upper end of the original target range. Provided there are no unforeseeable major loss events, the final result is likely to be slightly higher than this. This development underscores the Group's stable operating performance in all core segments.

In addition to the solid quarterly figures, the Company has launched a strategic initiative. Together with the investment firm Oaktree, it is establishing a new syndicate at Lloyd's of London. This partnership secures Allianz's long-term, highly rated reinsurance capacity. The move enables the Company to take advantage of capital market trends and tap into innovative forms of risk transfer. It is a logical move to further strengthen the resilience of the portfolio and respond flexibly to market opportunities.

Capital returns remain a key issue for shareholders. The dividend policy provides for a reliable distribution of a large portion of adjusted earnings, with the level of the previous year's dividend of EUR 15.40 being maintained at a minimum. This basis is supplemented by additional measures such as share buybacks. This combined strategy aims to offer attractive overall returns even in volatile phases. Dividend continuity is supported by solid capital resources and stable earnings power. The share price is currently trading at EUR 391.10.

The combination of cyclical recovery, structural growth, and defensive stability forms a robust earnings portfolio. TUI is rewarding shareholders after restructuring with a return to dividends. RE Royalties offers promising growth and a very high dividend yield with its royalty model for renewable energy. Allianz ensures fundamental stability in the portfolio with record-breaking results and predictable capital returns.