When you see a high-yielding stock like Annaly Capital Management (NYSE: NLY ) or American Capital Agency (NASDAQ: AGNC ) , you should immediately wonder whether it's too risky to invest in. In hindsight, I think most investors agree that this would have been a prudent thing to contemplate two years ago -- that is, before these companies slashed their dividends, took large hits to their book values, and watched as their share prices plummeted.
But is it possible for a stock to have both a high yield and offer safety of principal? Motley Fool contributor John Maxfield thinks so. In the following video, he explains why New York Community Bancorp (NYSE: NYCB ) fits this bill.
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