Forget New York Community Bancorp; Buy This Magnificent High-Yield Bank Stock Instead
Investors looking for attractively valued stocks often start by scanning through lists of underperforming shares. That's where you'll find both New York Community Bancorp (NYSE: NYCB) and Toronto-Dominion Bank (NYSE: TD), often referred to as TD Bank. While investors can find interesting stocks among Wall Street's laggards, you'll only want to buy the stocks that seem best positioned to turn things around.
For dividend investors, TD Bank looks like the better option here.
From a big-picture perspective, New York Community Bancorp got too big too fast and wasn't ready for it. Two acquisitions in a short span pushed its business up in size, and that meant that regulators would be taking a harder look at the company's business because it was more economically important. The bank didn't have the systems in place to handle the scrutiny. Perhaps as a sign of potential regulatory issues, the bank also found that several large loans in its portfolio were troubled.
Source Fool.com
