5 rock-solid dividend stocks to protect you from a stock-market retreat

The hard reality is that we are in year eight of an aging bull market DJIA, +0.33% That’s the second-longest run on record, second only to the 1990-2000 run. No stock-market rally in history has ever reached the 10-year mark. The takeaway, then, is simple: Now may be the time to take some money off the table, and get defensive. But even if you’re inclined to go “risk off” in the months ahead, don’t make the mistake of thinking the only alternative to stocks is to hide out in cash. In truth, there remain a few very attractive low-risk dividend plays that should hang tough even if the market does take a turn for the worse. Here are five such investments I’m watching right now...

Cincinnati Financial Corp. (CINF) is a diversified insurance company that flies under the radar of most investors. With a market capitalization of about $11 billion, it is roughly a third the size of big boys. Teva Pharmaceuticals Industries (TEVA) will be well-positioned to profit thanks to its focus largely on generic drugs. Energy Transfer Equity LP (ETE) is one of the largest pipeline operators in North America, and is structured as the general partner of some of the biggest names in energy. This is not your grandfather’s boring old AT&T Inc. (T) stock. Sure, it is still a cash cow supporting a juicy 4.7% dividend, but it’s also a dynamic telecom play that is well-suited for the 21st century. American Electric Power Co. AEP, -0.34% is one of the largest electric utilities in the United States with a $34 billion market cap.

Source: MarketWatch

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