Classic case of the high-dividend trap: the yield is made by falling prices—when the dividends are cut, you may not even be able to protect your principal.

Crypto/Web3 news flash: UWM Holdings (NYSE: UWMC) currently has a forward dividend yield of 19.2%, which appears to be a golden opportunity for yield-seeking investors. However, despite this extremely high yield, the market broadly believes its large dividend payouts may be difficult to sustain. UWM’s sharp share price drop has made it a high-yield stock, and analysts warn that it may face the risk of dividend cuts or even a pause in the future. While UWM’s revenue has rebounded after a steep decline, it still remains far below pre-pandemic profit levels. In 2021, UWM’s revenue was about $3 billion, while its 2025 earnings per share (EPS) is only $0.12. Analysts believe that if the housing market improves, UWM could recover, but until then, investors should remain cautious.