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

7/22/2014 9:49 AM
AGNC $23.30 Up +0.06 +0.26%
American Capital A… CAPS Rating: ****
NLY $11.27 Up +0.00 +0.03%
Annaly Capital Man… CAPS Rating: ****
NYCB $15.62 Up +0.02 +0.10%
New York Community… CAPS Rating: ****

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