Worry-Free Dividends: Best Buy and Unilever Are Turning the Corner—RE Royalties Offers Deep Value and a 10% Dividend

Best Buy: A Turnaround Thanks to Multiple Revenue Streams

US electronics retailer Best Buy is overcoming the weak margins of traditional retail by expanding its digital platforms. In the 2026 fiscal year, the company reported total revenue of USD 41.691 billion and achieved positive like-for-like revenue growth of 0.5% for the first time in four years. This upward trend accelerated in the first quarter of the current fiscal year, with revenue rising 1.9% to USD 8.936 billion—significantly exceeding market expectations. Management leverages the "Best Buy Marketplace" digital marketplace and the in-house retail media network "Best Buy Ads" as supplementary revenue streams, generating advertising and fee revenue through these channels. Thanks to the turnaround, management is pursuing a shareholder-friendly policy. Following distributions and buybacks totaling USD 1.07 billion in the 2026 fiscal year, Best Buy raised its quarterly dividend by about 1% to USD 0.96 per share. Best Buy has thus increased its dividend for 12 consecutive years.

Unilever: Corporate Restructuring for Greater Profitability

Consumer goods giant Unilever is overhauling its global portfolio to divest itself of capital-intensive and seasonally vulnerable divisions. Underlying revenue growth was impressive in fiscal year 2025, rising by 3.5%, although nominal revenue fell by 3.8% to EUR 50.5 billion due to negative currency effects and divestitures. The profitable "Power Brands," which account for approximately 78% of consolidated revenue, grew at a disproportionately high rate. To become even more profitable, Unilever is focusing on divestitures and spin-offs. In December 2025, the ice cream business was spun off as part of a demerger under the name "The Magnum Ice Cream Company". Further measures were taken in the first quarter of 2026, including the sale of the home care business in Colombia and Ecuador, the Graze snack brand, and the Indonesian tea business. Following the planned spin-off of the Foods segment, Unilever will remain a pure "Home & Personal Care provider." Shareholders currently receive a stable quarterly dividend of approximately EUR 0.47 per share and benefit from a EUR 1.5 billion share buyback program.

RE Royalties: The Innovative Royalty Model for the Global Energy Transition

Vancouver-based RE Royalties has successfully adapted the proven asset-light royalty model from the commodities sector to the renewable energy sector. The company is a specialized financier and occupies a critical niche in financings ranging from CAD 10 to 30 million, a segment often overlooked by traditional banks. In exchange for secured loans, RE Royalties secures long-term, contractually fixed gross revenue shares over terms of up to 25 years. This royalty model protects RE Royalties from project risks and guarantees long-term revenue streams.

To raise capital for investments, RE Royalties can rely on so-called green bonds, which are in demand on the market and offer attractive terms for all parties involved. In addition to solar and wind power plants, RE Royalties is also focusing on battery storage, thereby diversifying its portfolio. Since the company is already active in many countries, it possesses extensive expertise and is regarded as a sought-after partner by both investors and project operators. Nevertheless, management has identified further potential and, as early as March of this year, initiated a comprehensive strategic review process conducted by PricewaterhouseCoopers. The advisors are tasked with examining all options, including a recapitalization, strategic partnerships, or a complete sale—the goal is to enhance value for shareholders. The market is using Altius Minerals' acquisition of Lithium Royalty, announced in 2025 and valued at CAD 520 million, as a valuation blueprint.

Conclusion: Promising Outlook for RE Royalties

The transaction demonstrates that royalties are sought-after investments and that the associated long-term income streams are not always adequately valued on the open market—only the buyer, Altius Minerals, recognized the potential and was willing to pay a hefty premium. The management of RE Royalties hopes that the review by PricewaterhouseCoopers will provide a similar breakthrough. At a time when renewable energy is in high demand worldwide, and institutional investors are once again prioritizing inflation-protected investments, RE Royalties could be poised for a revaluation. The stock has been stable for several months and is trending slightly upward. Given an attractive dividend yield of around 10%, investors can also more easily weather minor fluctuations in the stock price. This dividend stock with growth potential is a must-add to your watchlist.