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
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 over the next 12 months. According to Wall Street analysts, the average 1-year price target for UWMC is 6.54 USD with a low forecast of 5.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 5.890
Low
5.00
Averages
6.54
High
10.00
Current: 5.890
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.
Two Harbors Investment Corp. to be sold to UWM Holdings, shareholders to receive 2.3328 shares per share
- Investigation Launched: Former Louisiana Attorney General Charles C. Foti and his law firm Kahn Swick & Foti are investigating the proposed sale of Two Harbors Investment Corp. to UWM Holdings to assess the adequacy of the transaction process.
- Shareholder Compensation Analysis: Under the proposed terms, shareholders of Two Harbors will receive 2.3328 shares of UWM Class A Common Stock for each share they own, with KSF evaluating whether this compensation undervalues the company.
- Legal Rights Consultation: KSF encourages shareholders who believe the transaction undervalues the company to reach out for legal consultation, ensuring they are informed of their rights and options regarding the sale.
- Firm Background: Kahn Swick & Foti, led by a former Louisiana Attorney General, is dedicated to protecting investor rights and ensuring transparency and fairness in corporate transactions.
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UWM Holdings Corp Dividend Fluctuation Analysis, Potential 7% Annual Yield
- Dividend Volatility: UWM Holdings Corp's dividend amounts are influenced by the company's profitability fluctuations, with historical data suggesting that recent dividends may continue, prompting investors to monitor earnings trends for future returns.
- Annual Yield Expectations: Based on historical dividend data, UWM Holdings Corp could achieve a 7% annual yield, allowing investors to assess its investment value and potential returns accordingly.
- Profit and Dividend Relationship: The ups and downs of the company's profits directly affect dividend payments, and understanding this relationship aids investors in making more informed decisions, especially during market volatility.
- Market Response: Although dividends are unpredictable, analyzing historical trends can provide investors with insights, helping them make more reasonable judgments when selecting dividend stocks.
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