UWM Holdings (UWMC) Declares $0.10 Dividend

UWM Holdings said on March 1, 2023 that its board of directors declared a regular quarterly dividend of $0.10 per share ($0.40 annualized). Previously, the company paid $0.10 per share.

Shares must be purchased before the ex-div date of March 9, 2023 to qualify for the dividend. Shareholders of record as of March 10, 2023 will receive the payment on April 11, 2023.

At the current share price of $4.60 / share, the stock's dividend yield is 8.70%. Looking back five years and taking a sample every week, the average dividend yield has been 7.29%, the lowest has been 3.66%, and the highest has been 13.56%. The standard deviation of yields is 2.84 (n=111).

The current dividend yield is 0.49 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 0.89. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

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Analyst Price Forecast Suggests 18.40% Downside

As of March 1, 2023, the average one-year price target for UWM Holdings is $3.75. The forecasts range from a low of $3.03 to a high of $5.25. The average price target represents a decrease of 18.40% from its latest reported closing price of $4.60.

The projected annual revenue for UWM Holdings is $1,756MM, a decrease of 25.99%. The projected annual non-GAAP EPS is $0.19.

What is the Fund Sentiment?

There are 290 funds or institutions reporting positions in UWM Holdings. This is an increase of 18 owner(s) or 6.62% in the last quarter. Average portfolio weight of all funds dedicated to UWMC is 0.06%, an increase of 36.09%. Total shares owned by institutions increased in the last three months by 2.98% to 38,455K shares. The put/call ratio of UWMC is 0.89, indicating a bullish outlook.

What are large shareholders doing?

Platinum Equity holds 4,894K shares representing 5.29% ownership of the company. In it's prior filing, the firm reported owning 4,984K shares, representing a decrease of 1.84%. The firm increased its portfolio allocation in UWMC by 22.60% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 2,300K shares representing 2.48% ownership of the company. No change in the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 2,146K shares representing 2.32% ownership of the company. In it's prior filing, the firm reported owning 2,104K shares, representing an increase of 1.99%. The firm increased its portfolio allocation in UWMC by 6.70% over the last quarter.

VISVX - Vanguard Small-Cap Value Index Fund Investor Shares holds 1,504K shares representing 1.62% ownership of the company. In it's prior filing, the firm reported owning 1,432K shares, representing an increase of 4.78%. The firm increased its portfolio allocation in UWMC by 4.21% over the last quarter.

Fidelity Central Investment Portfolios LLC - Fidelity U.S. Equity Central Fund holds 1,469K shares representing 1.59% ownership of the company. In it's prior filing, the firm reported owning 1,536K shares, representing a decrease of 4.57%. The firm increased its portfolio allocation in UWMC by 6.84% over the last quarter.

UWM Holdings Background Information
(This description is provided by the company.)

Headquartered in Pontiac, Michigan, UWM Holdings Corporation is the publicly traded indirect parent of United Wholesale Mortgage, LLC. UWM underwrites and provides closing documentation for residential mortgage loans originated by independent mortgage brokers, correspondents, small banks and local credit unions across all 50 states and the District of Columbia.

This story originally appeared on Fintel.