Is UUID.randomUUID() suitable for use as a one-time password?

No. According to the UUID spec:

Do not assume that UUIDs are hard to guess; they should not be used as security capabilities (identifiers whose mere possession grants access), for example. A predictable random number source will exacerbate the situation.

Also, UUIDs only have 16 possible characters (0 through F). You can generate a much more compact and explicitly secure random password using SecureRandom (thanks to @erickson).

import java.security.SecureRandom;
import java.math.BigInteger;

public final class PasswordGenerator {
    private SecureRandom random = new SecureRandom();

    public String nextPassword() {
        return new BigInteger(130, random).toString(32);
    }
}

---

P.S.

I want to give a clear example of how using UUID as a security token may lead to issues:

In uuid-random we discovered an enormous speed-boost by internally re-using random bytes in a clever way, leading to predictable UUIDs. Though we did not release the change, the RFC allows it and such optimizations could sneak into your UUID library unnoticed.

if you read the RFC that defines UUIDs, and which is linked to from the API docs, you'll see that not all bits of the UUID are actually random (the "variant" and the "version" are not random). so a type 4 UUID (the kind that you intend to use), if implemented correctly, should have 122 bits of (secure, for this implementation) random information, out of a total size of 128 bits.

so yes, it will work as well as a 122 bit random number from a "secure" generator. but a shorter value may contain a sufficient amount of randomness and might be easier for a user (maybe i am the only old-fashioned person who still reads email in a terminal, but confirmation URLs that wrap across lines are annoying....).