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.
John Maxfield has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.