1 Huge Dividend Yield That's Actually Safe

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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Related Tickers

9/29/2016 3:01 PM
AGNC $19.48 Down -0.04 -0.20%
American Capital A… CAPS Rating: ***
NLY $10.43 Down -0.07 -0.62%
Annaly Capital Man… CAPS Rating: ****
NYCB $14.21 Down -0.22 -1.49%
New York Community… CAPS Rating: *****