These High-Yield Dividend Stocks Are Growing at Blazing Speeds

Dividend stocks are distinct from growth stocks, right? Not necessarily. A given stock can pay dividends and offer solid growth.

You can even find some stocks with especially attractive dividends and growth. For example, these high-yield dividend stocks are growing at blazing speeds.

1. UWM Holdings

UWM Holdings (UWMC) ranks as the No. 1 mortgage lender in the U.S. It has also been the top wholesale lender in the country for eight consecutive years. 

The company's dividend yield currently stands above 6.4%. While that certainly qualifies as a high yield, it's actually near the lowest level for UWM over the last couple of years. At the beginning of 2023, UWM's yield was over 12%.

There's a simple -- and encouraging -- reason behind UWM's yield falling. The stock has absolutely skyrocketed in 2023. It's now up nearly 90% and had more than doubled before a recent pullback.

Can the stock keep its momentum going? JMP analyst Steven DeLaney doesn't think so. He downgraded UWM to a market perform rating from market outperform earlier this week.

I also suspect that UWM's high-flying ways could moderate somewhat. The stock is now priced for perfection with a forward earnings multiple of over 34x.

2. New York Community Bancorp

New York Community Bancorp (NYCB -3.26%) is the second-largest multifamily portfolio lender in the U.S. It leads the market in the New York City area. The company's Flagstar Mortgage ranks as the sixth-largest sub-servicer of mortgage loans nationwide.

Income investors have enjoyed attractive dividends from New York Community Bank for a long time. Since late 2004, its yield has rarely dropped below 4%. The company's dividend yield currently stands above 5%.

The bank has also given growth investors a lot to like in 2023. So far this year, its stock is up more than 50%. What makes this gain even more remarkable is that the bank's share price had fallen nearly 26% year to date in March.

Despite the impressive performance, New York Community Bank stock is still cheap. Shares trade at under 11x expected earnings. I wouldn't be surprised if the stock extends its momentum.

3. M.D.C. Holdings

M.D.C. Holdings (MDC) is a major homebuilder, constructing new homes under its Richmond American Homes unit. It's also a mortgage lender through its HomeAmerican Mortgage Corporation business.

In addition, M.D.C. runs several insurance companies. Its Allegiant Insurance mainly covers its homebuilding subsidiaries. StarAmerican Insurance reinsures Allegiant's claims. American Home Insurance provides third-party insurance to homebuyers. Finally, M.D.C.'s American Home Title and Escrow Company provides title agency services.

M.D.C.'s current dividend yield of over 4.3% qualifies it as a high-yielder, in my view. It hasn't always offered such an attractive yield, though.

The stock has been on a tear this year. M.D.C.'s shares have soared more than 60%. But can they go even higher? Maybe so.

M.D.C.'s valuation shouldn't be a damper. The stock trades at only 10.3x expected earnings. The main wild card for M.D.C. is what the Federal Reserve will do with respect to interest rates.

If the Fed continues to raise interest rates significantly, the stock will likely fall. On the other hand, if the Fed signals an end to its rate hikes in the near future, M.D.C. should get a second wind.

Analysts aren't all that bullish about the stock, though. Of the 12 analysts surveyed by Refinitiv in August who cover M.D.C., none rate it as a buy. Eight analysts recommend holding the stock, while four rate it as an underperform.