Looking at the universe of stocks we cover at Dividend Channel, in trading on Thursday, shares of UWM Holdings Corp (Symbol: UWMC) were yielding above the 7% mark based on its quarterly dividend (annualized to $0.40), with the stock changing hands as low as $5.69 on the day.
Dividends are particularly important for investors to consider because, historically, dividends have provided a considerable share of the stock market’s total return. To illustrate, suppose, for example, you purchased shares of the iShares Russell 3000 ETF (IWV) back on May 31, 2000, at $78.27 per share. Fast forward to May 31, 2012, and each share was worth $77.79 on that date—a loss of $0.48 or a 0.6% decrease over twelve years.
But now consider that you collected a whopping $10.77 per share in dividends over the same period, increasing your return to 13.15%. Even with dividends reinvested, that amounts to an average annual total return of about 1.0%. By comparison, collecting a yield above 7% would appear considerably attractive—if that yield is sustainable.
UWM Holdings Corp (Symbol: UWMC) is a member of the Russell 3000, giving it special status as one of the largest 3,000 companies on the U.S. stock markets. In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company.
In the case of UWM Holdings Corp, looking at the history chart for UWMC below can help in judging whether the most recent dividend is likely to continue, and, in turn, whether it is reasonable to expect a 7% annual yield.
[Click here to find out which 9 other dividend stocks just recently went on sale »]
Also see:
– Top Stocks Held By Barry Rosenstein
– EXFY Average Annual Return
– BRMK Market Cap History
*The views and opinions expressed herein are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.*
https://www.nasdaq.com/articles/uwmc-dividend-yield-pushes-above-7
