RWE’s Dividend Hike and AI Data-Center Pivot Propel Shares to Fresh Highs

RWE shares peak at €61.54 ahead of AGM, unveiling dividend hikes, €1.5B buyback, and a strategic shift to power US AI data centres with gas plants.

RWE’s stock touched a new 52-week peak of €61.54 in the session ahead of its virtual annual general meeting, as the German energy giant laid out a dual strategy of shareholder rewards and a pivot toward powering America’s artificial-intelligence boom.

The Essen-based group has proposed a dividend of €1.20 per share for the past financial year, up from €1.10, with the payout scheduled for 6 May if approved at the AGM on 30 April. The ex-dividend date falls on 4 May. Looking further ahead, management has set a target of €1.32 per share for the current year, underpinned by a commitment to annual dividend growth of roughly 10%.

That payout trajectory is backed by ambitious earnings forecasts. RWE expects adjusted net income to climb from €2.48 per share to around €4.40 per share by 2031, while adjusted EBITDA for 2026 is projected to land between €5.2 billion and €5.8 billion. The group’s adjusted operating result is seen reaching as high as €6.8 billion next year.

Buybacks and Balance Sheet Strength

Alongside the dividend proposal, RWE has been steadily repurchasing its own shares. In the third week of April alone, the company bought back roughly 352,000 shares, bringing the total for the current tranche to more than 7 million since December. The overall buyback programme, worth €1.5 billion, is set to run until mid-2026.

Despite heavy capital expenditure under the “Growing Green” strategy, net debt edged down to €10.9 billion at the end of 2025. The group plans to invest a net €35 billion by the early 2030s, expanding its renewable energy and storage capacity to around 65 gigawatts from 40 GW at present.

AI Data Centres Emerge as Key Growth Driver

A strategic focus has shifted to the United States, where RWE intends to use gas-fired power plants to back up the enormous electricity demand from AI data centres. The company’s grid subsidiary, Amprion, is also investing a record sum of more than €7 billion this year.

The pivot comes as RWE’s portfolio of renewables has expanded from 25 GW to 40 GW since 2021, driven by new wind and solar farms as well as better utilisation of its wind fleet due to favourable weather conditions.

Analyst Upgrades Reflect Momentum

Goldman Sachs raised its price target on RWE from €63.50 to €68.00 on 27 April, maintaining a “Buy” rating. The bank cited the group’s central role in electrification and flagged that the first-quarter results, due on 13 May, could beat conservative full-year guidance.

Citigroup lifted its target from €52.50 to €59.00 with a “Neutral” stance, while Deutsche Bank reiterated its “Buy” recommendation with a €63.00 target.

The stock has surged roughly 31% since the start of the year, making it one of the strongest performers in the DAX. The average analyst price target now sits at about €62.83, a level the current share price has nearly matched.

Investors will be watching the AGM closely for any updates on capacity targets, with the tone likely to set the stage for the first-quarter interim statement on 13 May.