Today, the market’s balanced on a knife’s edge, and there’s a lot of mixed messaging about which way things are going to go. I think we’re at the beginning phase of a new bull market, and if you look past the day-to-day noise, the evidence seems clear. Every major index that people track is 20% or higher above its lows for the year, and while there have been some bumps in the road, the overall trend is up.

Environments like this one are prime for “buying the dip,” because as long as the bull market lasts, good companies that might be getting beat up today are going to go right back up as markets trend higher and take everyone along for the ride.

But of course, there’s always a small chance that unforeseen conditions, like the U.S. economy plummeting into a recession, will send markets right back down. No one has a crystal ball, and it’s impossible to predict the way things are going to go with 100% certainty.

Fortunately, there’s a way to hedge against the risk of a downturn while also making sure you’re set up to reap the benefits of a bull market. That’s by buying “safety stocks” that perform well under adverse market conditions, but also have good appreciation potential when markets go higher. And if the stock is paying a good dividend with a payout ratio, so much the better.

My pick for you today is a perfect combination of those features. It’s paying around 6% yield right now and has a 65-year track record of raising dividends. The firm has been solidly profitable for the majority of its history, and they have some of the widest diversification I think I’ve ever seen in a single company, which provides unprecedented protection against earnings losses when the economy contracts.

My “Take It to the Bank” video this week has all the details. Check it out:

As I said above, while I think we’re in the early stages of a bull market, the threat of a recession is looming large, and it could crush your portfolio if it hits. Whichever way the market goes, I want to make sure you’re set up to make the biggest gains and protect yourself against staggering losses.

— Shah Gilani

Source: Total Wealth