The Resurgence of Small-Caps May Propel These 7%-14% Dividend Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Should l Buy UWMC?
Source: NASDAQ.COM
Small-Cap Stocks on the Rise: Small-cap stocks are gaining attention as interest rates decline, with four notable stocks yielding between 7.1% and 13.3%, signaling potential bullish trends as we approach 2026.
Nuveen Churchill Direct Lending (NCDL): NCDL offers a high dividend yield of 13.0% and is involved in financing small businesses, benefiting from lower borrowing costs despite a complex relationship with Fed rate changes.
UWM Holdings (UWMC): As America's largest home mortgage lender, UWMC has a 7.1% dividend yield and is positioned to benefit from lower mortgage rates, although its shares are not considered cheap.
Redwood Trust (RWT) and Franklin BSP Realty Trust (FBRT): RWT, with a 12.7% yield, focuses on jumbo mortgages and is expected to improve earnings, while FBRT, yielding 13.3%, deals in commercial mortgage-backed securities but faces challenges in maintaining its dividend.
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Analyst Views on UWMC
Wall Street analysts forecast UWMC stock price to rise
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 4.040
Low
5.00
Averages
6.54
High
10.00
Current: 4.040
Low
5.00
Averages
6.54
High
10.00
About UWMC
UWM Holdings Corporation, through its subsidiaries, is engaged in the origination, sale and servicing of residential mortgage loans throughout the United States. The Company originates primarily conforming and government loans across all 50 states and the District of Columbia. It operates in a single segment and is engaged in the origination, sale and servicing of residential mortgage loans, exclusively in the wholesale channel. It is focused on originating conventional, agency-eligible loans that can be sold to Fannie Mae, Freddie Mac or transferred to Ginnie Mae pools for sale in the secondary market. Its conventional agency-conforming loans meet the general underwriting guidelines established by Fannie Mae and Freddie Mac. Easiest Application System Ever is its primary LOS that allows clients to interact with the Company and to select products, lock rates and run the Automated Underwriting System. Blink+ is its client facing point of sale system white-labeled for its clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Increased Buyer Demand: The seasonally adjusted Purchase Index increased by 7.8%, 11% higher than the same week last year, demonstrating heightened buyer activity as winter weather improves.
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- Wage vs. Price Growth: Chief Economist Lawrence Yun highlighted that wage growth is now outpacing home price growth by nearly four percentage points, and while mortgage rates are significantly lower than last year, actual housing demand remains muted.
- Inventory Levels: There were 1.29 million units for sale at the end of February, a 2.4% increase from January, yet this remains below the six-month supply considered balanced, reflecting a sluggish supply growth trend.
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See More
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- Mortgage Application Growth: According to the Mortgage Bankers Association, total mortgage application volume rose by 3.2% last week, indicating the kickoff of the spring market despite ongoing volatility from the Middle East situation.
- Increased Buyer Demand: The seasonally adjusted Purchase Index increased by 7.8%, 11% higher than the same week last year, demonstrating heightened buyer activity as winter weather improves.
- Refinancing Applications Slightly Up: Refinance applications rose by just 0.5% last week but were 81% higher than the same week a year ago, suggesting that borrowers are still seeking lower rates despite market fluctuations.
- Popularity of Adjustable-Rate Loans: The share of adjustable-rate mortgage applications increased to nearly 9%, reflecting consumer interest in lower rates, albeit with higher associated risks.
See More
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- Acquisition Overview: UWM Holdings announced a $1.3 billion all-stock acquisition of TWO, with UWM shareholders expected to own approximately 87% of the combined company post-transaction, indicating strong market consolidation potential.
- Positive Market Reaction: Following BTIG analyst's confidence in the deal, shares of UWM and TWO jumped nearly 6% on Monday, reflecting investor optimism regarding the merger's success.
- Enhanced Financial Outlook: The acquisition will nearly double UWM's mortgage servicing rights (MSR) portfolio to approximately $400 billion, with expected annual cost and revenue synergies of about $150 million, significantly boosting profitability.
- Analyst Rating Maintained: BTIG maintains a 'Buy' rating on UWM Holdings with a $10 price target, suggesting that if interest rate volatility stabilizes, the stock could rebound over 10% in the near term.
See More
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- Hims & Hers Stock Surge: Shares of Hims & Hers rose 3% after Bank of America upgraded the stock from underperform to neutral, indicating market optimism about its potential to sell Novo's Ozempic and Wegovy drugs on its platform.
- BioNTech Shares Plummet: BioNTech's stock crashed over 20% following the announcement of its co-founders' departure to establish an independent company, alongside a reported fourth-quarter net loss of €305 million, highlighting deteriorating financial conditions.
- SolarEdge Stock Rises: Following Bank of America's upgrade to neutral, SolarEdge shares surged nearly 10%, reflecting increased market confidence in its improved margin trajectory, revenue stability, and liquidity.
- United Natural Foods Lowers Guidance: The grocery distributor reported second-quarter revenue of $7.95 billion, missing the $8.11 billion expected, and lowered its full-year revenue guidance to $31 billion to $31.4 billion, indicating ongoing market challenges.
See More
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- Sales Increase: Existing home sales in February rose by 1.7% from January to an annualized rate of 4.09 million units, according to the National Association of Realtors, although this reflects a 1.4% decline year-over-year, indicating ongoing market weakness.
- Wage vs. Price Growth: Chief Economist Lawrence Yun highlighted that wage growth is now outpacing home price growth by nearly four percentage points, and while mortgage rates are significantly lower than last year, actual housing demand remains muted.
- Inventory Levels: There were 1.29 million units for sale at the end of February, a 2.4% increase from January, yet this remains below the six-month supply considered balanced, reflecting a sluggish supply growth trend.
- First-Time Buyer Share: First-time buyers accounted for 34% of total sales, up from 31% a year ago, indicating an increase in market participation among new buyers despite low inventory and high prices.
See More
UWM Holdings Reports Record Loan Origination Volume in Q4
- Record Loan Volume: UWM Holdings reported a total loan origination volume of $49.6 billion for Q4 2025, marking its highest quarterly origination since 2021, indicating strong core business fundamentals and future growth potential.
- Optimistic Revenue Forecast: The company anticipates total revenue for Q1 2026 to be between $800 million and $900 million, and for fiscal year 2026 to range from $3.5 billion to $4.5 billion, reflecting confidence in its future performance even without the Two Harbors transaction.
- Successful AI Assistant Deployment: UWM expects its voice-enabled AI assistant, Mia, to handle over 12 million inbound and outbound calls this year, demonstrating its strong position in the industry as it continues to originate approximately 12% of all refinances and remains the largest originator of purchase loans in the country.
- Significant Returns on Tech Investments: The company is poised to showcase favorable results from its investments in people and technology over the past three years, expecting to achieve an annualized nine-figure revenue run rate from new products and services like TRAC+ and PA+, further solidifying its market leadership.
See More
UWM Updates 2026 Fiscal Year Outlook
- Record Loan Origination: UWM achieved a loan origination volume of $49.6 billion in Q4 2025, marking its highest quarterly volume since 2021, which underscores the company's robust market performance and solidifies its position as the largest mortgage lender in the U.S.
- Revenue Forecast Upgrade: UWM anticipates total revenue for Q1 2026 to be between $800 million and $900 million, with full-year revenue projected between $3.5 billion and $4.5 billion, reflecting strong core business fundamentals and sustained market demand.
- Significant AI Implementation: UWM's AI assistant Mia is expected to handle over 12 million inbound and outbound calls this year, enhancing team efficiency and enabling the company to manage two to three times its current volume without needing to replace departing team members, demonstrating the strategic value of its technology investments.
- Acquisition Potential Remains Strong: UWM expresses optimism about the strategic merits of acquiring Two Harbors, urging shareholders to support the transaction, which is believed to create long-term value and enhance competitive positioning in the market.
See More
